Genaro Needs to Capture a Return of 40 Percent for His

question 54

Multiple Choice

Genaro needs to capture a return of 40 percent for his one-year investment in a property. He believes that he can sell the property at the end of the year for $150,000 and that the property will provide him with rental income of $25,000. What is the maximum amount that Genaro should be willing to pay for the property?

• A) $112,500
• B) $125,000
• C) $137,500
• D) $150,000

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