You have successfully started and operated a company for the past 10 years. You have decided that
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You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $500,000 today and annuity payments for the balance. The first payment will be for $175,000 in three months. The payments will increase at 2 percent per quarter and a total of 25 quarterly payments will be made. If you require an EAR of 9 percent, how much are you being offered for your company?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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