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7 June, 16:11

If the present value of the expected future cash flows represented the company market value today; what should your company be willing to pay today for the business? assumeyour company has other opportunities to invest money today andin the future at a nominal 10% interest rate compounded annually?

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  1. 7 June, 16:41
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    PW = FW * (1 + i) ^-N

    where PW is present worth

    where FW is future worth

    where i is nominal interest rate compounded annually

    where N is period in years
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