Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are thinking of buying a miniature golf course to operate. It is expected to generate cash flows of $40,000 per year in years one

You are thinking of buying a miniature golf course to operate. It is expected to generate cash flows of $40,000 per year in years one through four and $50,000 per year in years five through eight. If the appropriate discount rate is 10%, what is the present value of these cash flows? Thank you for quick respond Please tell me How did you get the discount 10% chart, also I got the 40000, pv is 126794.61. How todo the 50000 part. I like todo it short cut using baii plus calculator . Won't have enough time during exam.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Entrepreneurial Finance

Authors: M. J. Alhabeeb

1st Edition

1118691512, 978-1118691519

More Books

Students also viewed these Finance questions

Question

Which is the better security measure,HTTPs or SSL

Answered: 1 week ago