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:

Ethical

Pertaining to or dealing with morals or the principles of morality; adhering to accepted standards of conduct.

Managers

Individuals in an organization responsible for directing and overseeing the work of a group of people towards the achievement of goals and objectives.

Ethical Standards

The principles that govern the behavior of individuals and organizations, ensuring actions are moral and right.

Peers

Individuals of similar status or within the same social group, often used to describe professional counterparts or classmates.