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This is a compounding rule applied to interest and used to determine how many years it takes for an investment to double in value in a tax deferred environment...
First of all, the practice may be selling for $800,000 and that is reasonable number for most purchasers to consider when starting out in practice...
Sell now or build to sell? Sell for present value or sell for future value? Commit now, but defer the actual sale until later? Take cash or fund your pension plan with the value of your practice? These are just a few important considerations for a dentist who is thinking and planning for the future.
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