How much will joe receive for selling the family business

Assignment Help Financial Management

Reference no: EM131842296

Joe just inherited the family business, and having no desire to run the family business, has decided to sell it to an entrepreneur. In exchange for the family business, Joe has been offered an immediate payment of $100,000. Joe will also receive payments of $200,000 in one year, $300,000 in two years, and $400,000 in three years. The current market rate of interest for Joe is 11%. In terms of present value (PV), how much will Joe receive for selling the family business?

Reference no: EM131842296

Questions Cloud

Building can be said to have a good of its own : Do you think that a book, a plant, or a building can be said to have a good of its own? Can things be done in its best interest? Does it have interests?

Describe the best ways for an organization : In this discussion, describe the best ways for an organization to understand pricing within its scope of services. Are the methods that you chose ethical?

At what point does a behavior become an addiction : From your perspective, at what point does a behavior or a set of behaviors become an addiction? Draw upon the addictions knowledge you have gained.

Appropriate causal-functional relations to sensory inputs : Be in an internal state which stands in appropriate causal/functional relations to sensory inputs, other internal states, and behavioural outputs.

How much will joe receive for selling the family business : The current market rate of interest for Joe is 11%. In terms of present value (PV), how much will Joe receive for selling the family business?

Identity theory essentially rests on the claim : Smart's case for the identity theory essentially rests on the claim that: a. The fact that mind-body correlations hold effectively rules out any alternative pos

Explore the different components of white-collar crime : Visit the site below, and explore the different components of white-collar crime: Federal Bureau of Investigation. (n.d.).

Write an essay on the three types of economic efficiencies : Write an essay on the three types of economic efficiencies and both positive and normative economics as it relates to regulating sugar-sweetened beverage sales.

Teaching accords with aristotle teaching : How is it that St. Thomas's natural law teaching accords with Aristotle's teaching in the Ethics, and how does it differ?

User Account

All Pages