What are the tax effects, Pay $30,000 at the end of each

What are the tax effects

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Reference no: EM132173516

Question: A developer is given the following two options for the purchase of a property:

a. Pay $100,000

b. Pay $30,000 at the end of each year, starting one year after purchase, for the next five years. If the inflation rate is assumed to be 5% per year and the interest rate 10%, which option should he take? Do not consider tax effects.

Reference no: EM132173516

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