For perpetuity cash flow that starts 15th year from today, Value at the end of the 14th year will be Cash flow / discount rate i.e. $10,000 / 10% = $100,000
So we can safely put +$100,000 in 14th year (in place for the perpetuity cash flow that starts in the 15th year)
Now, Various cash flows are shown below and Net present value is $280,218
b) We need to calculate the FV of the PV we calculated above after 14 years.
Fv = $280,218 * (1.1)^14 = $1,064,129.11
So we could sell the venture for $1,064,129.11 after 14 years.
c) At t=8, We could sell at $280,218 * 1.1^8 = $600,673.14
d) After 6 years, we could sell at $280,218 * 1.1^6 = $496,424.08
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