Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help finding the FV to answer this formula: Suppose that a potential buyer has offered to buy this company in three years. Based

I need help finding the FV to answer this formula:

Suppose that a potential buyer has offered to buy this company in three years. Based on the initial present value you calculated above in A1, what would be a reasonable amount for the buyer to pay for the company in three years' time?

Since the PV = -13,617.88

The future value of the above figure at the end of 3rd year stands at

-13,617.88 * (1.08)^3 = -17154.61

NPV = -17154.61 - "I have no idea, how to get the number that should be subtracted"

The given Interest Rate is 8%

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

Step: 3

blur-text-image

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

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

More Books

Students also viewed these Finance questions

Question

Why is it a good idea to avoid being judgmental? (p. 177)

Answered: 1 week ago