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Problem: You are negotiating to buy a small business. The seller assures you that the annual profits will be stable forever at $15,000, and that they have a present discounted value of $750,000, which is his asking price for the business.

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Question: Calculate the discount rate he must be using. Be sure to support your response with specifics.

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  • Category:- Basic Finance
  • Reference No.:- M91807858
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