Answer to Question #72501 in Finance for jones

Question #72501
The owner of a firm expects to make a profit of $100 for each of the two years and be able to sell the firm at the end of the second year at $800. The owner of the firm believes the appropriate discount rate for the firm is 15%. What is the value of the firm?
1
Expert's answer
2018-01-16T09:21:07-0500
PV=$100/(1+0.5)^1 +$100/(1+0.15)^2 +$800/(1+0.15)^2 =
=$86.96+$75.61+$604.91=$767.48

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Comments

Immaculate Monyuy
08.09.21, 06:20

Very good thank you

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