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What price per acre must receive today to break even

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Problem 1: Doctor Bob purchased 100 acres of land 10 years ago for $10,000 per acre. If he could have alternately invested the money at 9 percent per year, what price per acre must he receive today to break even with his opportunity (required) rate?

Problem 2: If Doctor Bob purchased 100 acres of land 10 years ago for $10,000 per acre and sold the land at $15,500 per acre today, what was his actual rate of return?

Reference no: EM132834305

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