A Property Could Be Sold Today to Provide an After-Tax

question 36

Multiple Choice

A property could be sold today to provide an after-tax cash flow from sale of $800,000.The current after-tax cash flow from operations is $20,000,which is expected to grow by 4% per year.If sold next year,the property is expected to provide an after-tax cash flow of $824,000.What is the marginal rate of return for holding the property for an additional year?

• A)5.6%
• B)2.6%
• C)3.1%
• D)9.3%

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Definitions:

American Commerce

American commerce consists of all trade and business activities that take place within the United States or between the United States and international markets.

Neutral Carrier

A country or entity that provides transportation of goods or services for other nations without taking sides in conflicts or disputes between those nations.

British And French

Terms relating to the nations of Britain and France, often in the context of their historical conflicts and alliances.

War Of 1812

A military conflict between the United States and Great Britain from 1812 to 1815, mainly over issues of trade restrictions and impressment of American sailors.