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Nataly [62]
3 years ago
5

Suppose that jack, sophia, and hal enter into a contract to close on the business without the non-competition agreement. jack st

ates that he would probably sign the non-competition agreement if they included an extra $100,000. a month later, hal and sophia bring jack $100,000. what is the result?
Business
1 answer:
Anarel [89]3 years ago
4 0

If jack does not accept the $100,000 there is a valid contract for the sales business, with out a non competition clause.

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Answer:

If opportunity cost is 5%, PV=10,366.05

If opportunity cost is 6.5%, PV=9,934.19

If opportunity cost is 11.5%, PV=8,656.79

Explanation:

PV=Σ(\frac{CF_{t} }{(1+i)^{t} })

If opportunity cost is 5%: PV = \frac{12,000 }{(1+0.05)^{3} } =10,366.05

If opportunity cost is 6.5%: PV = \frac{12,000 }{(1+0.065)^{3} } =9,934.19

If opportunity cost is 11.5%: PV = \frac{12,000 }{(1+0.115)^{3} } =8,656.79

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2 years ago
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Answer:

$760

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