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Sandra is considering the purchase of a yogurt shop. The shop's estimated life is 6 years. Sandra forecasts that the Question list shop will generate
Sandra is considering the purchase of a yogurt shop. The shop's estimated life is 6 years. Sandra forecasts that the Question list shop will generate end-of-quarter cash flows (CFs) of $40000, with the first CF being one quarter from today \& the final CF occurring 6 years from now. If 4.00% per quarter is the appropriate discount rate for valuing this business's CFs, calculate a fair price that any reasonable person (including Sandra!) would pay today for this yogurt shop. Question 7 a. Recall that the frequency of cash flows dictates all math set-up. Enter the right answer (one word): Cash flows are annual / quarterly / monthly: Therefore, the N in any annuity math must be in years / quarters / months (enter one): Also therefore, the rate ( r in any annuity math must be per year / quarter / month. Enter the right answer: Question 8 b. Now calculate the answer to the main question in the problem statement. Answer: $ [Round your answer to the nearest dollar.] Question 9 Question 10 Question 11 Question 12 Question 13
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