Need help You want to purchase a business with thefollowing cash flows.Year 1 $100,000-Year 2 $150,000-Year 3 $200,000-Year 4 $250,000-How much would you pay for this business todayassuming you need a 14% return to make thisdeal?

Explanation; To determine the appropriate price to pay for a business given future cash flows, one…

Answered: You want to purchase a business with…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 5TP: If you had $100,000 available for investing, which of these companies would you choose to invest...

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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
Use the present value and future value tables to answer the following questions. Time Value of Money - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax A. If you would like to accumulate $2,400 over the next 5 years when the interest rate is 15%, how much do you need to deposit in the account? $_____ B. If you place $6,200 in a savings account, how much will you have at the end of 6 years with a 12% interest rate? $_____ C. You invest $7,000 per year for 11 years at 12% interest, how much will you have at the end of 11 years? $_____ D. You win the lottery and can either receive $760,000 as a lump sum or $60,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why? _____
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Make a cash flow diagram of the problem below. Only cash flow diagram, I am not asking you to answer the problem just show me the correct cash flow diagram. Thanks in advance!!!
Question #3:Your thrift account is expected to generate a $2,000 profit at the end of year 1, and profit willincrease by 8% per year through year 5. If you can earn 12% annual interest compoundedannually, what is the present value of all your profits over the next 5 years? SHOW A “ROUGH” CASH FLOW DIAGRAM SHOW YOUR WORK ON HOW YOU CAME TO THE ANSWER (i.e. Equation) Answer _____________________ Work ---→
You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset? a. 5.19% b. 5.46% Ⓒc. 6.05% d. 5.75% e. 4.93%
☐ Use the following information to answer the next two questions. Consider the after-tax cash flows below: Year 0 1 2 3 4 Cash Flow -$76,000 $5,100 -$1,000 $498,000-$329,000 The required rate of return is 12.1 percent. Question 30 5 pts Use the cash flow and IRR features of your financial calculator to find an internal rate of return (IRR) for these cash flows. Show all calculator inputs including cash flows and IRR function inputs. Express your answer in percentage form and round your answer to 2 decimal places.
1. Please help me to answer this question clearly with the calculation show step by step without using excel or any other apps...
What would you be willing to pay (now) for the following yearend cash flows if your required return is 6.25%? Year 1 5,000 Year 2 4,000 Year 3 3,000 Year 4 2,200

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You want to purchase a business with the following cash flows. Year 1 $100,000 - Year 2 $150,000 - Year 3 $200,000 - Year 4 $250,000 - How much would you pay for this business today assuming you need a 14% return to make this deal?