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The BU Company is considering selling its School of Business to Harvard University. The proposed deal would require Harvard to pay BU $30,000 and $25,000
The BU Company is considering selling its School of Business to Harvard University. The proposed deal would require Harvard to pay BU $30,000 and $25,000 at the end of years 1 and 2, and to also make yearly payments (at the end of the year) of $15,000 in years 3 thru 9. Harvard would make a final payment to BU for $10,000 at the end of year 10. If the discount rate is 12% what is the present value of this series of payments
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