Chad Tayler would like to purchase a printing business from its owners. Chad anticipates that the business will generate cash flows of $80,000 per year for the next 10 years. At the end of 10 years. Chad intends to sell the store for an estimated $500,000. Determine the maximum price Chad Taylor should pay for the business assuming the annual interest rate of 5%. Once Determine Chad Taylor has the following choices to purchase the printing business: 1 pay the maximum price determined in the previous questions in cash. 2. Obtain a 10-year mortgage for the maximum price in the question with an annual payment of 120,000 What the pros and cons for each option what is the interest rate of the mortgage which payment option would you choose?
Chad Tayler would like to purchase a printing business from its owners. Chad anticipates that the business will generate
Determine the maximum price Chad Taylor should pay for the business assuming the annual interest rate of 5%.
Once Determine Chad Taylor has the following choices to purchase the printing business:
1 pay the maximum price determined in the previous questions in cash.
2. Obtain a 10-year mortgage for the maximum price in the question with an annual payment of 120,000
What the pros and cons for each option
what is the interest rate of the mortgage
which payment option would you choose?
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