Investment in real estate development deal

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Reference no: EM1359860

Family A and family B both consist of a father, mother, and two children of school age. In family A both spouses have jobs outside the home and earn a combined income of $100,000 per year. In family B, only one spouse works outside the home and earns $100,000 per year. How do the financial circumstances and decisions faced by the two families differ?

60/7. Suppose you invest in a real estate development deal. The total investment is $100,000. You invest $20,000 of your own money and borrow the other $80,000 from a bank. Who bears the risk of this venture and why?

Note: Please correspond the solutions with the questions.

Reference no: EM1359860

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