Question: 19. A factory is expected to generate $3,000,000 per year every year for the next twelve years. An interested investor uses a required rate (discount
19. A factory is expected to generate $3,000,000 per year every year for the next twelve years. An interested investor uses a required rate (discount rate) of 11.25%. What is the intrinsic value of the factory to this investor.
a. 19,247,271.61
b. 19,133,220.55
c. 18,976,457.88
d. 18,865,311.09
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
