Need to do 23 to solve 24 I'm lost please help Question 23 5...
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Need to do 23 to solve 24 I'm lost please help
Question 23 5 pts Chad Taylor would like to purchase a printing business from its owners. Chad anticipates that the business will generate cash flows of $90,000 per year for the next 10 years. At the end of 10 years, Chad intends to sell the store for an estimated $400,000. Required: Determine the maximum price Chad Taylor should pay for the business assuming an annual interest rate of 5%. 2323 2233333 Question 24 10 pts Using the information from the previous question, assume that Chad Taylor has the following choices to purchase the printing business: 1. Pay the maximum price determined in the previous question in cash. 2. Obtain a 10-year mortgage for the maximum price in the previous question, with annual payments of $120,000. Required: 1. What are the pros and cons for each option? 2. What is the interest rate of the mortgage? 19 3. Which payment option would you choose? Please explain your answers below
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