Mr. Zhu is selling his business for retirement. It is expected that the cash flows from his

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Mr. Zhu is selling his business for retirement. It is expected that the cash flows from his business in each of next 5 years will be$500,000. At the end of the 5years, the residual value of the business is expected to be$8 million. Mr. Zhu has his expected rate of return of12.0% . What could be the closest estimate to his"fair marketvalue" (of similarbusiness) at which he would be willing to sell hisbusiness?

$6.34 million

$6.50 million

$5.80 million

$6.00 million

Posted Date: May 19, 2024 12:01 AM

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