ali business with 780000 is expected to grow at 10% per year compounded annually for the next 4 years. Find (a) the expected future value (b) if funds from sale of the business today would be placed in an account yielding 6% compounded semi annually, what would be the minimum acceptable price for the business at this time

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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ali business with 780000 is expected to grow at 10% per year compounded annually for the next 4 years. Find (a) the expected future value (b) if funds from sale of the business today would be placed in an account yielding 6% compounded semi annually, what would be the minimum acceptable price for the business at this time

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