Question: Suppose that you are trying to put a net present discounted value on the NxtBgTng. The company is going to lose $20 million this year,
Suppose that you are trying to put a net present discounted value on the NxtBgTng. The company is going to lose $20 million this year, lose $11 million next year, zero in two years, but then earn $12.10 million every year after (first coming three years from now). If the interest rate is 10%, what is the value of NxtBgTng?
a. $70 million
b. $50 million
c. $80 million
d. $90 million
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