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Suppose that you uindertook an investment project with the following estimated cash flows. At the end of year 3, you have received and offer to
Suppose that you uindertook an investment project with the following estimated cash flows. At the end of year 3, you have received and offer to buy the project from another firm; what minimum price would be the fair price to ask? Here your required return on investment is 15%
n | An |
0 | -$152,000 |
1 | 42,400 |
2 | 53,400 |
3 | 52,500 |
4 | 62,500 |
5 | 33,000 |
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