How much are you being offered for your company

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Reference no: EM132000607

You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii.

A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $700,000 today and annuity payments for the balance.

The first payment will be for $290,000 in three months. The payments will increase at 1.2 percent per quarter and a total of 25 quarterly payments will be made.

If you require an EAR of 9 percent, how much are you being offered for your company?

Reference no: EM132000607

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