Potential buyer has offered to buy company in five years

Assignment Help Financial Management

Reference no: EM131915472

Suppose that a potential buyer has offered to buy a company in five years. Based on the present value you calculated what would be a reasonable amount for which the company should be sold at that future time?

The PV = (470.45) and FV = 691.25 - NPV = (462.08) The interest rate to determine PV and FV was 8% ?I am having a difficult time determining the reasonable amount. Help would be appreciated.

Reference no: EM131915472

Questions Cloud

What should be futures price : Based on the current spot price, what should be the futures price?

What amount of the MNO production costs is avoidable : Louder Company manufactures part MNO used in several of its truck models. What amount of the MNO production costs is avoidable

Determine the estimating cost function with kilowatt-hours : Use the high-low method to determine the estimating cost function with machine-hours as the cost driver. Which cost driver was the best predictor for July

Discuss characteristics of the major research paradigms : Briefly compare the characteristics of the major research paradigms used in previous studies on the chosen topic.

Potential buyer has offered to buy company in five years : Suppose that a potential buyer has offered to buy a company in five years.

Which capital budgeting method has least drawbacks making : Which capital budgeting method has the least drawbacks making it superior to other capital budgeting methods?

What impact did american settlers have on the natives : What impact did American settlers and the American government have on the natives of the Great Plains as they settled what was once Native American territory?

Calculate the projects initial time cash flow : The project requires $1,150,000 in initial net working capital investment Calculate the project's initial time 0 cash flow, taking into account all side effects

Identify potential internal threats to validity : Identify potential internal threats to validity and explain how you might mitigate these threats. Apply ethical principles to the proposed research.

User Account

All Pages