Question: it was an initial 250000 to purchase . need help with d and e please This young entrepreneur is concerned that the government will decide
This young entrepreneur is concerned that the government will decide to heavily tax anc regulate the marijuana market (you would have to be high to think otherwise). Under this scenario, he predicts the following stream of cash flows. An initial return of $0.20 for every dollar invested. This will grow at 7% for 2 years before it slows down and declines at 30% forever (between the high sin tax and lack of novelty demand declines in the long-run). (d) (5 points) Find the PV of years 0-3. (e) (5 points) Find the PV of years 4+ money in forure is 38,142.02(10.30)26,699.114[11+(0.12(0.30))26,699.414
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