Implied interest rate for forgoing the repairs

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Reference no: EM131810192

The Engineering Building at State University needs $500K worth of repair and renovation. The state cannot afford these repairs in the near future. If the repairs are not performed, the building will require replacement in 8 years. The building will cost $2.8M to replace. Determine the implied interest rate for forgoing the repairs.

Reference no: EM131810192

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