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Volkert Engineering purchased SOL Engineering for $100 million(at MARR=15%) in hopes of selling it 7 years from now. They estimate a net cash flow decrease
Volkert Engineering purchased SOL Engineering for $100 million(at MARR=15%) in hopes of selling it 7 years from now. They estimate a net cash flow decrease with a arithmetic gradient of $10 million per year startig in year 5. There is expected to be a net loss of 7 million annually starting at the end of year 1. What should be volkerts minimum selling price in 7 years?
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