This purchase increase the present value of the firm

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Reference no: EM132001160

A firm that owns and manages rental properties is considering buying a building that would cost $1,600,000 this year, but would yield an annual revenue stream of $60,000 per year for the foreseeable future. For what range of interest rates would this purchase increase the present value of the firm?

The present value of the firm will increase with this investment for interest rates (r) such that r ≤ %.

(Enter your response rounded to two decimal places.)

Reference no: EM132001160

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