Purchase a business with the cash flows

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You want to purchase a business with the following cash flows. How much would you pay for this business today assuming you need a 14% return to make this deal?

a) First year- $150,000

b) Second year- $175,000

c) Third year- $225,000

d) Forth year- $275,000

E) How much would you pay for this business today assuming you needed a 18% return to make this deal? (Same problem as above.)

What type of problem is this?

Reference no: EM131020166

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