The cost of capital for the ice cream parlor is 555 percent


A ice cream parlor is expected to produce regular annual cash flows of 36,661 dollars with the first regular cash flow expected later today and the last regular cash flow expected in 5 years from today. In addition to the regular cash flows of 36,661 dollars, the ice cream parlor is also expected to produce an extra cash flow of 51,693 dollars in 5 years from today. The cost of capital for the ice cream parlor is 5.55 percent. What is the value of the ice cream parlor?

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Financial Management: The cost of capital for the ice cream parlor is 555 percent
Reference No:- TGS02760253

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