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How much does biff have to pay

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Q1. Bob currently owes Lemonade Inc. $6,000 on his tab. Bob is confident he will get a job that will enable him to pay back his tab in 3 years from today. Assuming Lemonade Inc.'s WACC is 10%, how much does Biff have to pay us in 3 years to make this payment worth $6,000 today (select the closest dollar amount)?

Q2. Bob currently owes Lemonade Inc. $6,000 on his tab. Bob thinks his part time job will allow him to pay back his tab if he pays $1,500 per year each year over the next 5 years. Assuming Lemonade Inc.'s WACC is 10%, what is the value today of $1,500 per year, each year, for 5 years (select the closest dollar amount)?

Reference no: EM133187682

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