If Andre Preneur Puts Together a Company That Yields a Profit

question 85

Multiple Choice

If Andre Preneur puts together a company that yields a profit of $40, 000 per year and this profit stream is expected to continue indefinitely, what price can he sell the company for if the discount rate equals 8 percent?

• A)$40, 000
• B)$60, 000
• C)$100, 000
• D)$250, 000
• E)$500, 000

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Definitions:

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Involving making judgments about the value of something, typically in terms of its usefulness, quality, or performance.

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