Will that price be feasible for the buyer

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Reference no: EM133559897

Question: Company M&N is expected to generate net cash flows of $18,000.00 in the first year and $21,000.00 during each of the next 6 years, the company can be sold for $160,000.00 after 8 years. The owners of the company would like to be able to earn 12% on their investment in the business.

Will that price be feasible for the buyer? Calculate the value of the company using the discounted cash flow method and expand your answer.

Reference no: EM133559897

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