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Sendy Tu would like to sell her nail salon, located in downtown Manhattan. Chung Ho has offered to buy the business for $845,000 cash. Donald
Sendy Tu would like to sell her nail salon, located in downtown Manhattan. Chung Ho has offered to buy the business for $845,000 cash. Donald Rush has also offered to buy the business. He will pay $145,000 now, $200,000 one year from now, $250,000 two years from now, and S300.000 three years from now. Assuming money is worth 7.8% compounded annually, what is the equivalent cash price (present value) of Donald s offer? $836,546 $785,137.15 /45 o 0 u $895,000 $864,815.38 aso, 300 @/ 2yo
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