Question
Your brother owns a commercial electrical company. A friend of his is retiring and has offered to sell her electrical maintenance contracts to him. She
Your brother owns a commercial electrical company. A friend of his is retiring and has offered to sell her electrical maintenance contracts to him. She has given you her speadsheets and you have estimated that you would earn a cash flow of $2098 per month after expenses. Your financial advisor has estimated that you may be able to sell the company for $480556 in 4 years.
Based on the risk of this investment, you require a return of 8.22%. What is the most you should be willing to pay for the contracts today?
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Financial Accounting A Critical Approach
Authors: John Friedlan
4th edition
1259066525, 978-1259066528
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