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QUESTION 5 Joe just inherited the family business, and having no desire to run the family business, he has decided to sell it to an
QUESTION 5 "Joe just inherited the family business, and having no desire to run the family business, he has decided to sell it to an entrepreneur. In exchange for the family business, Joe has been offered an immediate payment of $200000. Joe will also receive payments of $10000 in one year, $50000 in two years, and $2000 in three years. The current market rate of interest for Joe is 5%. In terms of present value (PV), how much will Joe receive for selling the family business?Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 6 "A perpetuity has a PV of $1000. If the interest rate is 5%, how much will the perpetuity pay every year? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 7 "Ally wishes to leave a provision in her will that $2000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 10%?Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an
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