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Compute the rate of return that he would earn

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Question - GoFast Corp. wishes to renovate the property so that he can sell it at a higher price. The after-tax cash flow over next year up to RM320,000 if the property was renovated. The renovation cost is estimated at RM800,000, and it is predicted that after one year, the property will be sold for an additional 25% of its current price. If the owner renovated the property, compute the rate of return that he would earn on that additional funds? Is the renovation a good option?

Reference no: EM133061003

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