What should be minimum value of land in ten years


Renco International can buy the piece of property for $140,000. Renco has the plant on adjacent property, and views this new parcel as the possible site for the expanded plant site in 10 years. If land taxes are evaluated to be 3% of purchase price, and if Renco can earn 9%, compounded semi-annually, what should be minimum value of land in 10 years to make purchase worthwhile-regardless of whether Renco actually uses site for the plant expansion?

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Mathematics: What should be minimum value of land in ten years
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