Question

Hellenic Vultures is expected to generate $100,000 of net cash flows next year, $120,000 the year after, and $150,000 for the following three years. It is expected that the firm could be sold for $500,000 at the end of the fifth year. The owners of Hellenic Vultures, who would like to sell their firm, strongly believe that their investment in the firm should generate a 10 percent return. What is the minimum price at which they should sell the firm?


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  • CreatedMarch 27, 2015
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