You expect to sell your business in 4 years for $10 million. If the discount rate (ror) is 50% what is the present value of your company based on your expectation?

Group of answer choices

$1.97 million

50%

$10 million

$1 million

$2.95 million

You expect sales next year of $10 million. If you apply an industry price to sales (P/S) ratio of 3 to it, how much will your company be worth then?

Group of answer choices

1/3

$3 million

$30 million

$10 million

$50 million