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n ongoing business should be able to produce cash flows as listed below. It's offered for sale at a price of $1.5 million, and most interested buyers understand the current owner will unlikely nything less. If an appropriate opportunity cost of money is 9.0%, what is the value of this business for anyone who buys today from the owner? • Year 1-$305,000 • Year 2-$327,000 • Year 3- $348,500 Year 4-$385,000 400.000

n ongoing business should be able to produce cash flows as listed below. It's offered for sale at a price of $1.5 million, and most interested buyers understand the current owner will unlikely nything less. If an appropriate opportunity cost of money is 9.0%, what is the value of this business for anyone who buys today from the owner? • Year 1-$305,000 • Year 2-$327,000 • Year 3- $348,500 Year 4-$385,000 400.000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An ongoing business should be able to produce cash flows as listed below. It's offered for sale at a price of $1.5 million, and most interested buyers understand the current owner will unlikely accept anything less. If an appropriate opportunity cost of money is 9.0%, what is the value of this business for anyone who buys today from the owner? • Year 1 - $305,000 Year 2 $327,000 ● ● ● ● Year 3- $348,500 Year 4- $385,000 Year 5 - $422,000
Transcribed Image Text:An ongoing business should be able to produce cash flows as listed below. It's offered for sale at a price of $1.5 million, and most interested buyers understand the current owner will unlikely accept anything less. If an appropriate opportunity cost of money is 9.0%, what is the value of this business for anyone who buys today from the owner? • Year 1 - $305,000 Year 2 $327,000 ● ● ● ● Year 3- $348,500 Year 4- $385,000 Year 5 - $422,000
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