Question
1 You want to start a business that you believe can produce cash flows of $44,000, $61,000, and $80,000 at the end of each of
1 You want to start a business that you believe can produce cash flows of $44,000, $61,000, and $80,000 at the end of each of the next three years, respectively. At the end of three years you think you can sell the business for $200,000. At a discount rate of 9.7 percent, what is this business worth today?
a $302,897
b $291,636
c $350,957
d $151,397
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305838
