Question
You invest in a business that you expect will earn profit (in thousands of dollars) of $12 by the end the year, $17 next year,
You invest in a business that you expect will earn profit (in thousands of dollars) of $12 by the end the year, $17 next year, $25 the third year, and $30 the 4th year. Other investments of equal risk earn 5%. How much is this business worth today?
| $84.00 | ||
| None of the above | ||
| $73.13 | ||
| $88.88 | ||
| $69.64 |
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
