Question: Calculate in math the present value for offer 1 and 2 . Show normal work please I can't read the others Offer I. The buyer
Calculate in math the present value for offer and Show normal work please I can't read the others
Offer I. The buyer in this case was Smythe Manufacturing. They offered Dr Miller $
million now plus $ each year beginning at the end of year six and continuing
through the end of year fifteen. You are Dr Millers financial advisor and you feel that given the associated risks to this payment stream, a interest discount rate should be used to determine the present value of the offer.
Offer II The buyer in this case was Brouwer Pharmaceutical. They offered percent
of their gross profit on the product for the next four years, with payments beginning at the end of the first year. Brouwers gross profit margin was Sales in year one were
projected to be $ million and are forecasted to grow by percent each year thereafter.
You are Dr Millers financial advisor and you feel that given the associated risks to this payment stream, an interest discount rate should be used to determine the present value of the offer.
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