Your friend has a business she wants you to value. The business will not generate any money for the next three years, but in the fourth year it will start turning a profit and will make a payment (the first payment) of $150,000 to the owners at the end of the fourth year. Your friend expects to be able to grow the business, and the payments made to the owners, by 4% per year forever, and the owners will receive their payments at year end. If the appropriate discount rate is 14%, what is the value of the business today?
Perpetuity PaymentRate of Return less Growth RateNumber of yearsTypePresent Value #NAME? $1,500,000.00 $150,00010%9990
Are you overwhelmed by an intense schedule and facing difficulties completing this assignment? We at GrandHomework know how to assist students in the most effective and cheap way possible. To be sure of this, place an order and enjoy the best grades that you deserve!Post Homework