Determined that rate of return

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Reference no: EM131572948

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $10,000, and $16,200 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 12 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

$25,378.77

$22,308.06

$31,200.00

$23,967.06

$33,852.00

Reference no: EM131572948

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