You want to purchase a business with the following cash flows: Year one $100,000 Year two $150,000
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Question:
You want to purchase a business with the following cash flows:
- Year one $100,000
- Year two $150,000
- Year three $200,000
- Year four $250,000
How much would you pay for this business today assuming you require a 14% return to make this deal? Explain.
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