Offered to purchase a business for 1 8 0 , 0 0 0 in 2 0 2

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Question:

Offered to purchase a business for

180, 000

2024 .

The business has been showing steady net income growth of

5 %

annually for the last several years, the net income was

30, 575

2023 .

Assuming that this trend will continue for another

10

years, sell the business after

10

years for

240, 000 .

What is the NPV

?

Posted Date: May 11, 2024 04:37 AM

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Offered to purchase a business for 1 8 0 , 0 0 0 in 2 0 2

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Expert Answer:

To calculate the Net Present Value NPV of the business we need to discount the future cash flows net ... View the full answer

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