You are offered a business partnership that guarantees you cash returns of $150,000 one year from now,

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You are offered a business partnership that guarantees you cash returns of $150,000 one year from now, nothing at the end of year 2, and $350,000 at the end of year 3. After year 3, the partnership will be dissolved, and there will be no more expected returns on your investment. If you analyze this plan expecting 7% compounded annually, what is this potential deal worth to you today?

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Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

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