You are a business broker that buys and sells businesses, contracts and legal settlements of various types.

Question:

You are a business that buys and sells businesses, contracts and legal settlements of various types. You use a 14% minimum required return for all transactions. You are thinking about making an offer to buy the rights to a structured settlement that is expected to pay $1 million a year at the end of years 1-5.
a.) What's the most you should pay to obtain the rights to these payments?
b.) Based on your answer to part a.), what might be a good first offer to make on the stream of payments?
Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...