This topic contains a solution. Click here to go to the answer

Author Question: Comparing Costs and ReturnsYou and two of your friends are offered the chance to buy a bar. The ... (Read 182 times)

camac77

  • Full Member
  • ***
  • Posts: 139
Comparing Costs and Returns

You and two of your friends are offered the chance to buy a bar. The revenues from the bar have been steady at $120,000 a year for the past six years and are projected to remain steady in the future. The costs (not including opportunity costs) of operating the bar (including maintenance and repair, depreciation, and salaries) have also been steady at $70,000 a year. If five-year Treasury builds are currently yielding 4.75% interest, what is the maximum amount you will pay to buy the bar assuming any cash flows beyond year 5 are uncertain and therefore considered to be worth zero?
Please round your final answer to two decimal places.
◦ $250,000.00
◦ $217,978.05
◦ $600,000.00
◦ $523,147.31


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by camac77 on Nov 23, 2022

annaelena92

  • Full Member
  • ***
  • Posts: 167
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 35% of students answer this correctly




camac77

  • Member
  • Posts: 139
Reply 2 on: Nov 23, 2022
Gracias!


sarah_brady415

  • Member
  • Posts: 328
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

For a complete list of videos, visit our video library