Body & Soul12 mins ago
Perpetuity Question
0 Answers
I'm studying an investment question.
Company A's Price is 2 million pounds
Company B's Price is 3 million pounds
Company A's profitability is consistent with a perpetuity of 300,000 pounds per year.
Company B's profitability is consistent with a perpetuity of 435,000 pounds per year.
Maximum purchase cost is 4million pounds. Discount rate is 12 percent to both.
A) What company or companies, if any should be purchased with the npv rule
B) with IRR rule?
C) Which company should be purchased?
Company A's Price is 2 million pounds
Company B's Price is 3 million pounds
Company A's profitability is consistent with a perpetuity of 300,000 pounds per year.
Company B's profitability is consistent with a perpetuity of 435,000 pounds per year.
Maximum purchase cost is 4million pounds. Discount rate is 12 percent to both.
A) What company or companies, if any should be purchased with the npv rule
B) with IRR rule?
C) Which company should be purchased?
Answers
Best Answer
Nobody has yet answered this question. Once some answers have been given, trebor1980 will be able to select one answer as the best. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.There are no answers available for this question.
Latest Posts
Is Elon Musk An "Absolute Hero...
News21 mins ago
ChatterBank22 mins ago
Crosswords35 mins ago
Listener 4848 - Return By Dysart
Crosswords48 mins ago
Listener 4848 Return By Dysart
Crosswords49 mins ago
Related Questions
Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.