Milky Way Equity Partners expects to sell its investment in Jupiter Motors for $103 million in...
Milky Way Equity Partners expects to sell its investment in Jupiter Motors for $103 million in 1 years at a discount rate of 10%. At this discount rate, calculate the present value of this cash flow
Homework Answers
Present value=Cash flow*Present value of discounting factor(rate%,time period)
=103/1.1
which is equal to
=$93.64 million(Approx).
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