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Author Question: Comparing Costs and ReturnsYou and two of your friends are offered the chance to buy a bar. The ... (Read 491 times)

camac77

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on: Nov 23, 2022
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
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by camac77 on Nov 23, 2022

annaelena92

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Reply #1 on: Nov 23, 2022
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.
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camac77

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Reply 2 on: Nov 23, 2022
Wow, this really help

samiel-sayed

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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