Question
Your investment in a tanning salon is expected last for 5 years. The expected series of CFs is C1=$40K, C2=$30K, C3=$80K, C4=$0 (you plan to
Your investment in a tanning salon is expected last for 5 years. The expected series of CFs is C1=$40K, C2=$30K, C3=$80K, C4=$0 (you plan to travel the world during year 4), and C5=$63K. Using a discount rate of 10%, calculate the PV of this stream of expected CFs from the salon? (b) How will the PV be affected by a change in the discount rate to 7%?
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Overcoming Debt Achieving Financial Freedom
Authors: Cindy Zuniga-Sanchez
1st Edition
1119902320, 978-1119902324
