Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Eclectic Solutions LLC Sum of the Present Values of the Expected Cash Flows Cash Flow Amount Type of Factor Factor at 25% Present Value at

image text in transcribed
image text in transcribed
Eclectic Solutions LLC Sum of the Present Values of the Expected Cash Flows Cash Flow Amount Type of Factor Factor at 25% Present Value at 25% Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $ 500,000 542,500 569,625 615,195 655,183 687,942 756,736 794,573 846,220 918,149 PV A PV B PV 0.5120 PV 0.4096 PV PV 0.2621 PV 0.2097 PV 0.1678 PV 0.1342 PV 0.1074 D E 291,648 251,984 214,703 180,310 158,688 F 113,563 98,609 $2,190,034 Terminal value Final projected year cash flow X (1+Long-term cash flow growth rate) Discount rate - Long-term cash flow growth rate Terminal value - Final projected year cash flow X (tu Long-term cash Bow growth rate) Descontroleer cash flow growth rate You want to determine the value of your business, Ediecte Solutions. You have determined the expected cash flows for the next ten years for the business and calculated the sum of the present values associated whese cash flows using a contrato 025. Referencing sesund the present Values of the expected Cash Flows schedule above and assuming a long-term growth pe of 1% and a tone for your use of $3.863.876 - What is the present of the mal ve for your business? 1. 1114910

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance The Markets And Financial Management Of Multinational Business

Authors: Maurice D. Levi

3rd Edition

0070376875, 978-0070376878

More Books

Students also viewed these Finance questions