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5. (1 pt) You intend to sell your brilliant startup business for $1,000,000 5 years from today. In 10 years (from today), your second startup
5. (1 pt) You intend to sell your brilliant startup business for $1,000,000 5 years from today. In 10 years (from today), your second startup will be sold for $2,000,000. If you have an interest rate of 5% with monthly compounding, how much are these two startup firms worth today in total? Extra credit (2 pts) number of years What is the present value of a perpetuity which will pay you a dollar amount equal from time zero in perpetuity. Assume that the relevant discount rate is 10% 0 3 100,000 Time 1 100 0 $1 $2 $3 $4 Payment $100 $100,000
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