To help him achieve this goal a wealthy aunt is willing to


An entrepreneur wants to purchase a particular small business. The asking price is $5 million. He expects to improve the business's operations over a period of five years and sell it at a handsome profit. To help him achieve this goal, a wealthy aunt is willing to loan the entrepreneur $5 million for five years at zero percent interest. Given this loan, what is the lowest rate of return the entrepreneur should be willing to accept on purchase of the business? Why?

Solution Preview :

Prepared by a verified Expert
Finance Basics: To help him achieve this goal a wealthy aunt is willing to
Reference No:- TGS02230875

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)