.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.

Answer rating: 100% (QA)

Okay lets solve this with the new cash flow information a Price buyer w... View the full answer