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A local microbrewery expects to generate annual Net Free Cash Flow in the amounts of $15,000 in Year 1, $25,000 in Year 2 and $30,000
- A local microbrewery expects to generate annual Net Free Cash Flow in the amounts of $15,000 in Year 1, $25,000 in Year 2 and $30,000 in Year 3.Thereafter, annual cash flow is expected to stabilize at $31,000 and remain at that level for the foreseeable future.The required rate of return for this business is 10%.Based solely on this information, what constitutes a fair "offer" price to buy this business [i.e., to acquire full control]?
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
