Several years ago, your firm paid $25,000,000 for Clean Tooth, a small, high-technology company that manufactures laser-based tooth cleaning equipment. Unfortunately, due to the extensive production line in sales resistance problems the company is considering selling the division as part of a modernization program. Based on current information the following are the estimated accounting numbers if the company continues to operate the division:

______________________________________________________________________

Estimated cash receipt, next 10 years = $500,000/year

Estimated cash expenditures, next 10 years = $450,000/year

Current offer for the division from another firm = $250,000

____________________________________________________________________________________________________________

Assume:

-The firm is the 0 percent tax bracket (no income taxes)

- there are no additional expenses associated with the sale

- After year 10, the division will have sales (and expenses) of 0

- estimates are completely certain

1. if market rate of interest >=x you better sell

2. calculate x (round to nearest whole)

plz help me i dont know what any of this means and have no clue how to solve this on excel