Mr. Dilam Gawain believes his barber shop is worthP200,000 and estimates that its value will grow at10% per year compounded annually for the next 3years. If he sells the business, the funds will beinvested at 8% compounded quarterly for 3 years.Find (a) the future value of the business if it is to becontinued and (b) what price should he sell hisbusiness at present if he chose to sell his businessand still yield the same value in continuing hisbusiness?

Name: Mr. Dilam Gawain believes his barber shop is worthP200,000 and estima
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Description: Mr. Dilam Gawain believes his barber shop is worthP200,000 and estimates that its value will grow at10% per year compounded annually for the next 3years. If he sells the business, the funds will beinvested at 8% compounded quarterly for 3 years.Find

Business

Accounting

Find (a) the future value of the business if it is to be continued and (b) what price should he sell his business at present if he chose to sell his business and still yield the same value in continuing his business?

Find (a) the future value of the business if it is to be continued and (b) what price should he sell his business at present if he chose to sell his business and still yield the same value in continuing his business?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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