Question
.Assume that expectations have changed at end of year five and cash flows will be $80,00/year in years 6 thru 12 and the terminal payment
.Assume that expectations have changed at end of year five and cash flows will be $80,00/year in years 6 thru 12 and the terminal payment stays the same.
a)What price would the buyer pay using 21% as the required rate of return.
b)What return would the seller earn?
c)What return would the buyer earn assuming the change cash flows does occur.
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Okay lets solve this with the new cash flow information a Price buyer w...
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Construction Accounting And Financial Management
Authors: Steven J. Peterson
4th Edition
0135232872, 978-0135232873
