Question
Your company is selling some real estate that they need to offload to generate some cash and they have received two different potential offers. (a)
Your company is selling some real estate that they need to offload to generate some cash and they have received two different potential offers.
(a) $1,250,000 today plus $500,000 one year from now
(b) $500,000 today, $500,000 six months from now, and $1,000,000 in a year.
1. What is the Present Value of (a) and (b)?
2. Which offer should you take and why?
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
