Net present value
Question # 00074752
Posted By:
Updated on: 06/07/2015 04:58 PM Due on: 06/07/2015
Last year, a barber shop generated $100,000 in profit. Assume that the shop's profits grow at 5% per year and that cash flows are discounted at 10% per year. If profits are received at the end of each year, what is the present value of all the shop's future profits?
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Rating:
/5
Solution: Net present value