Question: Need help quick, please show work, thank you Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218,000,

Need help quick, please show work, thank you

Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218,000, $224,000, and $238,000 over the next three years, respectively. After that time, they feel the business will be worthless. The current owner of Holiday Vacations asks for 550,000, and the desired rate of return is 14.5 percent, 1 How much is Holiday Vacations worth based the cash flows it will bring in next three years? 2 If you are hired by Southern Tours as a financial manager on this project, do you think Southern Tours should accept the price offered by the owner? Why

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