Homework Answers
The following details are given in the question
r = relevant interest rate = 12%
n= 5 years
Future Value of land = $175,000
Present value of land = Future value of Land / (1+r)^n
= $175,000 / (1+12%)^5
= $175,000 / 1.762342
= $99,299.6997508
Therefore, Tadashi should pay for land is $99,299.70
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