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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 $1932 per month after expenses. Your financial advisor has estimated that you may be able to sell the company for $476363 in 5 years. Based on the risk of this investment, you require a return of 11.41%. What is the most you should be willing to pay for the contracts today
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