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9. You want to purchase a business with the following cash flows. How much would you pay for this business today assuming you need a
9. You want to purchase a business with the following cash flows. How much would you pay for this business today assuming you need a 14% return to make this deal? Discounting rate @ 14% PV of CF 131578.9474 134656.8175 First year Second year Third year Forth year TOTAL 580926.4323 0.877192982 S150,000 s175,000 $225,000 S275,000 a. b. 0.769467528 0.67491516 151868.5911 C. d. 0.592080277 162822.0763 10. How much would you pay for this business today assuming you needed a 18% return to make this deal? (Same problem above.) as What type of a problem is this
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