Asked by T Smith
Your company is considering buying a company that is forecasted to have earnings as shown below. Assuming these estimates to be perfectly accurate, what is the present value of this stream of earnings? Assume an interest rate of 5.5%
Year 1 $50,000
Year 2 $60,000
Year 3 $70,000
Year 4 $80,000
Year 1 $50,000
Year 2 $60,000
Year 3 $70,000
Year 4 $80,000
Answers
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