Investment opportunity in securities

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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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