Question
You are told that the normalized cash flows for a business equal $60,000 per year. An annualdiscount rate of 8% and an annualgrowth rate of
You are told that the normalized cash flows for a business equal $60,000 per year. An annualdiscount rate of 8% and an annualgrowth rate of 2% apply.
Based on the above, and ignoring all other factors, the business would be worth $600,000.
TrueFalse
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Fundamental Managerial Accounting Concepts
Authors: Thomas P Edmonds, Philip R Olds
9th Edition
1259969509, 9781259969508
