Goran owns a medical clinic that has a cost of capital of 15.73 percent. The medical clinic is expected to produce annual cash flows of 65,967 dollars for 5 years. The first annual cash flow of 65,967 dollars is expected later today. In addition to the annual cash flows of 65,967 dollars, the medical clinic is also expected to produce a special, one-time cash flow of 54,349 dollars in 2 years from today. How much is Goran’s medical clinic worth?
| Year | Cashflows | PVF at 15.73% | Present value | |
| 1 | 65967 | 0.86408 | 57000.78 | |
| 2 | 120316 | 0.746635 | 89832.08 | |
| 3 | 65967 | 0.645152 | 42558.75 | |
| 4 | 65967 | 0.557463 | 36774.17 | |
| 5 | 65967 | 0.481693 | 31775.83 | |
| Present worth of Clinic | 257942 | |||
Goran owns a medical clinic that has a cost of capital of 15.73 percent. The medical...
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