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You are an entrepreneur, financing an enterprise. You manage to find wealthy investors who are considering your project. If they invest today, they will not
You are an entrepreneur, financing an enterprise. You manage to find wealthy investors who are considering your project. If they invest today, they will not see any cash flows for the next five years. At the end of the fifth year (t=5), and through year 10 (t=10), you expect to pay them regular dividends of $100K per year. Given the rate of return required to be 15% per year, how much will the investors give you today (in thousands)?
a. | 216.38 | |
b. | 286.16 | |
c. | 248.84 | |
d. | 378.45 |
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