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CSePub Home Book Store Instructors Independent Authors About A company gonerates 532,158.00 in cash tow pex yea ast forever for aluing the opporhry If inveslors want a 10 00% annsal netarn to buy the company, how much are they iling to pay? Lets assume the company w Anwer Format: Currency: Round toc 2 decimal places Enter Answer Here Submit Ansuwer 0图自田 3 5 6 7 8 9 0
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Answer #1
Maximum amount that can pay for this opportunity = Cash Flow generated per year / Required rate of return
Maximum amount that can pay for this opportunity = $ 92,158 / 0.10
Maximum amount that can pay for this opportunity = $ 921,580
So we can pay maximum for this investment is only $ 921,580
Answer = $ 921,580.00
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