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Posted on Jun 03, 2024

You have decided that after graduation you would like to start your own business. You found a local lawn care business that is for sale.

You have decided that after graduation you would like to start your own business. You found a local lawn care business that is for sale. You contact the owner and he provides the following information:

1. Annual Net Returns: $44,000

2. Year 7 Business Value: $53,000

You are planning on running the business for seven years. What is the market value of the business given a 10.5% discount rate?

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