Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you have successfully started and operated a compa

You have successfully started and operated a company for the past 10 years. You have...

70.2K

Verified Solution

Question

Finance

image
You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawail. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered \\( \\$ 700,000 \\) today and annuity payments for the balance. The first payment will be for \\( \\$ 290,000 \\) in three months. The payments will increase at \1.2 per quarter and a total of 25 quarterly payments will be made. If you require an EAR of 9\\%, how much are you being offered for your company? (Do not round intermediate colculations. Round your answer to 2 decimal ploces, e.g., 32.16.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. You have been asked by the president of Ellis Construction Company, headquartered in Toledo, to...

Finance
Q

For a displacement addressing mode using the register R1, with R1 = 196,803,43210, and the displacement...

Programming
Q

A body of mass 7 kg is projected vertically upward with an initial velocity 18 meters...

Advance Math
Q

Chicago contractors got $5,400,000 contract to construct a school building for the City of Chicago. Work...

Accounting
Q

QUESTION 9 A point is given on the terminal side of an angle drawn in...

Basic Math
Q

j x 5x 2x 8

Calculus
Q

Use the graph on the right to find a Hamilton path that begins at A...

Algebra
Q

Paper Company receive $5,000,-month promisory noterum Dame Company in settlement of...

Accounting
Q

Presented below is an aging schedule for Pharoah Company. Customer...

Accounting
Q

The product of any integer and itself is odd

Accounting
Q

Journal entry: August 1: The business owner loaned the company $10,000 at 4% interest annually...

Accounting
Q

Waterways uses time and material pricing when it bids on irrigation projects. Budgeted data for...

Accounting