Homework Answers
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=4000/1.09+20,000/1.09^2+9000/1.09^3+32000/1.09^4
which is equal to
=$50122.58(Approx).
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the business to grow substantially over the next three years.
Because she is concerned about product liability and is planning to
take the company public in year 2, she currently is considering
incorporating the business. Pertinent financial data are as
follows:
Year 1
Year 2
Year 3
Sales revenue
$150,000
$320,000
$600,000
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8,000
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Ashley runs a small business in Boulder, Colorado, that makes
snow skis. She expects the business to grow substantially over the
next three years. Because she is concerned about product liability
and is planning to take the company public in year 2, she currently
is considering incorporating the business. Pertinent financial data
are as follows:
Year 1
Year 2
Year 3
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Because she is concerned about product liability and is planning to
take the company public in year 2, she currently is considering
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Year 1
Year 2
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Sales revenue
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$320,000
$600,000
Tax-free interest income
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