An investor has an opportunity to buy a parcel of land for, Business Economics

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An investor has an opportunity to buy a parcel of land for

An investor has an opportunity to buy a parcel of land for $100,000. He plans to sell it in two years. What will the sale price have to be for the investor to get a 25% constant dollar before-tax ROR with inflation averaging 10% annually? What escalated dollar annual rate of increase in land value will give the needed sale price?

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