Sunshine has the cash available to make an immediate cash


The Wellington family has an offer to sell a plot of land to Land Developers, Inc. (LDI) for $1,000,000. However, to allow LDI time to generate the required payment from its operations, the Wellingtons must agree to delay collection of the money for a 4 year period. The Wellingtons have an alternative offer to sell the land to Sunshine Properties. Sunshine has the cash available to make an immediate cash payment for the property. Assuming a 10% required rate of return, at what price would Sunshine be required pay to in order to match LDI's offer?

a) $3,169,865.

b) $1,000,000.

c) $683,013.

d) $751,315.

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Accounting Basics: Sunshine has the cash available to make an immediate cash
Reference No:- TGS01363613

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