hard · Principles of Finance time-value-of-money
A business owner expects to sell a division in 5 years for a series of 5 annual payments of $200,000 each.
If the first payment is received at the end of year 6 and the discount rate is 10%, what is the value of this deal today?
- $689,233.95
- $470,756.07
- $427,866.18
- $758,157.35
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