Joe Just Inherited the Family Business, and Having No Desire

question 35

Essay

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 (PV), how much will Joe receive for selling the family business?

---

Definitions:

Hackers

Hackers are individuals who use their technical knowledge to gain unauthorized access to computer systems for either malicious purposes or as a form of activism.

NAT

Network Address Translation, a method used in networking to remap one set of IP addresses to another by modifying network address information in the IP header of packets while they are in transit across a traffic routing device.

Network

A group of interconnected computers, servers, and other devices that can exchange data and share resources and services using wired, wireless, or virtual connections.