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An ongoing business should be able to produce cash flows as listed below. It's offered for sale at a price of $1.5 million, and most

An ongoing business should be able to produce cash flows as listed below. It's offered for sale at a price of $1.5 million, and most interested buyers understand the current owner will unlikely accept anything less. If an appropriate opportunity cost of money is 9.0%, what is the value of this business for anyone who buys today from the owner? Year 1 $305,000 Year 2 $327,000 Year 3 $348,500 Year 4 $385,000 Year 5 $422,000

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