You are starting a club in New York City. The club will bring profits of $40,000 every six months, growing at 4% per six-month period, forever. You will keep the club for 3 years, and sell it immediately after receiving the 6th payment. How much is the business worth today? Assume APR = 20%.

Answer rating: 100% (QA)

We can analyze the value of this club using two concepts Perpetuity This represents the infinite str... View the full answer