Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $10,000, and $

Question

2 years ago

15

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $10,000, and $

16,200 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 12 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?
a. $25,378.77
b. $22,308.06
c. $31,200.00
d. $23,967.06
e. $33,852.00

Business

1 answer:

Slav-nsk [51] · Answer 1 · 2022-08-31T12:41:07+03:00

Answer:

C

Explanation:

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