Question

Robert Williams is considering an offer to sell his medical practice, allowing him to retire five years early. He has been offered $500,000 for his practice and can invest this amount in an account earning 10 % per year. If the practice is expected to generate the following cash flows, should Robert accept this offer and retire now?
End of Year.......Cash Flow
1............ $150,000
2............ 150,000
3............ 125,000
4............ 125,000
5............ 100,000


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  • CreatedMarch 26, 2015
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