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You are looking to buy a business in the light bulb industry. You have $ 4 0 0 , 0 0 0 saved up to
You are looking to buy a business in the light bulb industry. You have $ saved up to pay for it Any money you do not use to buy the business will be invested at the discount rate. You have identified businesses for sale that make flourecent light bulbs you could purchase: You have received the financials from each business and determined their business model and cost structure: You have also determined a steady grow th rate for sales and costs. After years, you believe you can sell the business for times cash flow.
Use the Net Present Value Methodology to determine which of the buisnesses is the best purchase. Rank eavh business and discuss why you would or would not buy each business.
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