Question
Jakes client has approached Jakes firm regarding a business investment he is considering. The client isnt sure what the future cash flows are worth and
Jakes client has approached Jakes firm regarding a business investment he is considering. The client isnt sure what the future cash flows are worth and wants to make sure he doesnt overpay. The business venture is expected to lose $10,000 in the first year, earn $10,000 in the second year, $25,000 in the third year and $35,000 in the 4th year. Assuming the client wants to earn at least 10% return on his money, how much should the client pay for the future potential cash flows from the business?
Using a BA II plus I'm not sure what to solve for?
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