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A small business, Company A, believes it can generate an income stream of $120,000 per year for the next 20 years. A larger firm,
A small business, Company A, believes it can generate an income stream of $120,000 per year for the next 20 years. A larger firm, Company B, offers to purchase Company A for a lump sum of $ 2 million today. With a continuous interest rate of 2% per year, is this a reasonable deal for Company A? Explain in terms of present value. Choose one
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
