Task: What would the present value of a business that earns the following profit be using a 5-yr life span and a 12% risk-adjusted discount rate.
1 Expected profit received at end of yr $10,000?
2 Expected profit received at end of yr $20,000?
3 Expected profit received at end of yr $50,000?
4 Expected profit received at end of yr $75,000?
5 Expected profit received at end of yr $50,000?