More tech drilling is considering the sale of its alaskan, Ask an Expert

Economics

More Tech Drilling is considering the sale of its Alaskan subsidiary to another company. The subsidiary is expected to produce profits of $800,000 next year, which drops by $50,000 per year for the following 14 years. If More Tech's interest rate is 12%, what price should More Tech charge for the subsidiary? (Answer: PW = $3.75M)

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92635783

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