Reserves $27,000 Checkable Deposits $110,000 Loans 50,000 Stock Shares 200,000 Securities 33,000 Property 200,000 Refer to the a
1 answer:
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Answer:
It should obtain at least: $ 17,363,986.04
Explanation:
we have several cash flow of different magnitude. As thisi s a finite sum of cash flow, we solve using present value of each lump sum using our WACC as discount rate:
Year Nominal Cash Flow Present Value
1 8,500,000.00 7,391,304.35
2 7,000,000.00 5,293,005.67
3 5,000,000.00 3,287,581.16
4 2,000,000.00 1,143,506.49
5 500,000.00 248,588.37
Total Present value 17,363,986.04