Question
A company has an offer to sell it strip mall they purchased for an investment. The offer is a lump sum of $1,200,000 in cash.
A company has an offer to sell it strip mall they purchased for an investment. The offer is a lump sum of $1,200,000 in cash. The owners prefer to have a steady stream of payments to assist them in their retirement planning.
- Given a 7 year payout and a discount rate of 9%, what is annual payment will cause this option to be equal in value to the lump sum payment?
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Financial Accounting An Introduction
Authors: Mr Barry Elliott, Mr Augustine Benedict
2nd Edition
0273737651, 9780273737650
