Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

urgent!please help Eclectic Solutions LLC Sum of the Present Values of the Expected Cash Flows Terminal value =DiscoumtrateLong-termcashflowgrowthrateFinalprojectedyearcashflow(1+Long-termcashflowgrowthrate) You want to determine the value of

urgent!please help image text in transcribed
image text in transcribed
image text in transcribed
Eclectic Solutions LLC Sum of the Present Values of the Expected Cash Flows Terminal value =DiscoumtrateLong-termcashflowgrowthrateFinalprojectedyearcashflow(1+Long-termcashflowgrowthrate) You want to determine the value of your business, Eclectic Solutions. You have determined the expected cash flows for the next ten years for the business and calculated the sum of the presenif values associated with these cash flows using a discount rate of 25%. Referencing the Sum of the Present Values of the Expected Cash Flows schedule above-and assuming the present value of the terminal value of your business is $1,000,000 - what is the equity value of your business? $3,190,034$1,190,034$2,297,434$107,400 When you are trying to sell your business, being willing to stay on with the businessffor a specified period of time after selling it usually reduces the perceived risk on the part of the buyer and thus increases the perceived value of your company. True False

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions