Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If Miho's annual earnings is $18,000 and it will keep the same for ten years and then the business will be closed. At the

image text in transcribed

If Miho's annual earnings is $18,000 and it will keep the same for ten years and then the business will be closed. At the discount rate of 8%, what is the present value of Miho's bagel store? Please use the discounted present value method to calculate the value. DPV= N FV, Fa0 (1+i)' for each future carnings (FV) at any time period (1), discount rate is i O Approximately $120,000 O Approximately $140,000 O Approximately $110,000 O Approximately $130,000

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

Financial Accounting in an Economic Context

Authors: Jamie Pratt

9th edition

9781118803035, 1118582551, 1118803035, 978-1118582558

More Books

Students also viewed these Accounting questions