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Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday vacations can generate cash flows of $182,000, and $245.000 the next three years, respectively. After

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Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday vacations can generate cash flows of $182,000, and $245.000 the next three years, respectively. After that time, they feel the business will be worthless. Southern Tours has determined that a 13.5 percent rate of return is applicable to this potential acquisition. What is Southern Tours willing to pay today to acquire Holiday Vacations? $503, 098 $538, 615 $545, 920 $601, 226 $638, 407

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