Use the Information for the Question(s)below

question 39

Essay

Use the information for the question(s)below.
Joe just inherited the family business,and having no desire to run the family business,he has decided to sell it to an entrepreneur.In exchange for the family business,Joe has been offered an immediate payment of $100,000.Joe will also receive payments of $50,000 in one year,$50,000 in two years,and $75,000 in three years.The current market rate of interest for Joe is 6%.
-In terms of present value,how much will Joe receive for selling the family business?

---

Definitions:

Embryo

The early stage of development in multicellular organisms, in humans, it refers to the stage after fertilization and before becoming a fetus.

Selective Reduction

A medical procedure used in multiple pregnancies to reduce the number of fetuses to a number safer for both the mother and the remaining fetuses.

Fertility Drugs

Medications that stimulate egg production and are used to treat infertility in women aiming to assist in conceiving.

Fetuses

A developing human from roughly eight weeks after conception until the time of birth.