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Gerry is considering buying a small business that makes t-shirts. He plans on running the business for 17 years before selling it. He expects to
Gerry is considering buying a small business that makes t-shirts. He plans on running the business for 17 years before selling it. He expects to make $20,614 each semiannual period for the 17 years that he owns the business with his first $20,614 realized at the end of the first semiannual period. He has also contracted with 3 large events to make t-shirts that will generate cash flows of $17,619,$28,716, and $14,026 in 5 years, 10 years and 15 years respectively. At the end of year 17 he plans to sell the business of $159,419 after collecting the $20,614 in annual revenue. How much should he pay for the business if the interest rate is currently 14.58% Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "\$" "," or any other formatting. Carry interim computations to at least 4 decimals. Enter numerical answers as a positive or negative number rounded to 2 decimal places (\#\##.##)
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