Your engineering firm purchased a sub firm for 100 million


Question: Your engineering firm purchased a sub firm for $100 million (at MARR=15%) in hopes of selling in 7 years from now. you estimate a net cash flow decrease with an arithmetic gradient of 10 million per year starting in 5. there is expected to be a net loss of 7 million annually starting at the end of 1 year. what should be your minimum selling price in 7 years?

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Finance Basics: Your engineering firm purchased a sub firm for 100 million
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