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Econint recently bought a company and wants to determine the optimal time to sell it. The
partner in charge of this investment has estimated the after-tax cash flows from a sale at
different times to be as follows: R700 000 if sold one year later; R1 000 000 if sold two years
later; R1 200 000 if sold three years later; and R1 300 000 if sold four years later. The
opportunity cost of capital is 12 %
Required: Advise on the best time for Econint to sell the company and provide supportive justification for your answer
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