Question
You sold your online business to Google. Google agreed to pay you $50,000 now, $10,000 per year for the next 9 years and $100,000 in
You sold your online business to Google. Google agreed to pay you $50,000 now, $10,000 per year for the next 9 years and $100,000 in 10 years if the business meets certain performance targets. If you invested the money, you would earn a return of 7%. What is the present value of all the cash flows, assuming the performance targets are met?
Step by Step Solution
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Step: 1
The present value of all the cash flows is 16410636 To calculate the present ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
