Question: Question 25 This question is worth 10 marks Please show the formulas that you are using and calculations Not yet answered Marked out of 10.00
Question 25 This question is worth 10 marks Please show the formulas that you are using and calculations Not yet answered Marked out of 10.00 Pag question You want to invest in a small company that will bring in stable cash flows in the future. You estimate the cash inflows (benefit) from the company area will be $20,000 in year 1, $30,000 in year 2 $50,000 in year 3 and 535,000 in year 4 and for all following years to infinity a) What is the value of this company assuming a discount rate of 14% (7 marks) b) If the asking price from current owner was 3350,000 would you purchase (prove your answer) 3 marks) A BI III P
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