Soo Ling wants to start a business that she believes can produce cash flows of RM5,600, RM48,200, and RM125,000 at the end of each of the next three years, respectively. At the end of three years, she thinks she can sell the business for RM250,000. At a discount rate of 16 percent, what is her business worth today?   Select one: A. RM314,011.33 B. RM297,077.17 C. RM325,837.81 D. RM280,894.67

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
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Soo Ling wants to start a business that she believes can produce cash flows of RM5,600, RM48,200, and RM125,000 at the end of each of the next three years, respectively. At the end of three years, she thinks she can sell the business for RM250,000. At a discount rate of 16 percent, what is her business worth today?

 

Select one:
A. RM314,011.33
B. RM297,077.17
C. RM325,837.81
D. RM280,894.67
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