Investment opportunity in securities

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Reference no: EM131810104

An investment opportunity in securities has been presented by MT Pockets Brokerage to the investment firm of Johnson, Todd, and Sanders, Inc. (JTX). The first cost of the securities will be $150,000. Each year, it is expected that the securities will yield $15,000 in income. At the end of 5 years, the securities will be sold for $250,000. If JTX pays taxes at the 20% marginal rate and requires a 15% return on all investments, should the securities be purchased? Assume capital gains taxed at 20% rate

Reference no: EM131810104

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