You are planning to take over your

brother's business.$$ You have estimated

it will give you net cash flows of $$6879$ per month.$$ You hope to sell it in $6$ years for $$423386.$

Your required return is $9\mathrm{.}07\%,$ how is the business worth today?$($hint:$$

There is both an annuity $($the semi$-$annual payments$)$ and a lump sum $($the

selling price$).$ Find the present value

of each and add them together. Use the same $"$r$"$ and $"$t$"$ for

both the annuity and the lump sum.$)$