You sold your online business to Google. Google agreed to pay you $70,000 now, $10,000 per year for the next 9 years and $100,000 in 10 years if the business meets certain performance targets. If you invested the money, you would earn a return of 9%. a. What is the present value of the combined cash flows, assuming the performance targets are met?
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You sold your online business to Google. Google agreed to pay you $70,000 now, $10,000 per year for the next 9 years and $100,000 in 10 years if the business meets certain performance targets. If you invested the money, you would earn a return of 9%.
a. What is the present value of the combined cash flows, assuming the performance targets are met?
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