Olsen electric has a line of small motors that no longer fits the corporate image. They...
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Olsen electric has a line of small motors that no longer fits the corporate image. They are attempting to establish a minimum value for the small motors line. Olsen currently receives $250,000 per year in positive cash flows. If the discount rate is 16% what is the value if it thinks the life of the small motor line is: a) 10 years b) 20 years c) infinity (forever) Olsen electric has a line of small motors that no longer fits the corporate image. They are attempting to establish a minimum value for the small motors line. Olsen currently receives $250,000 per year in positive cash flows. If the discount rate is 16% what is the value if it thinks the life of the small motor line is: a) 10 years b) 20 years c) infinity (forever)
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To calculate the present value of the small motor line we need to use the discounte... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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