After that time they feel the business will be worthless


SouthEstern Travel is considering acquiring Sunshine Tour. Managment believes Sunshine Tour can generate cash flows of $157,000, $200,000, and $235,000 over the next three years, respectively. After that time, they feel the business will be worthless. SouthEstern Travel has determined that a 10.5 percent rate of return is applicable to this acquisition. What is SouthEstern Travel willing to pay today to acquire sunshine tour?

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Finance Basics: After that time they feel the business will be worthless
Reference No:- TGS02264286

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