60 429
Assignments Done
98,1%
Successfully Done
In April 2018

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?
Expert's answer
PV=$100/(1+0.5)^1 +$100/(1+0.15)^2 +$800/(1+0.15)^2 =
=$86.96+$75.61+$604.91=$767.48

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions