The discount rate used to evaluate such a business is 145


You are currently considering to buy a service station which will be in operation for 10 years. If purchased, the service station is expected to generate a first cash flow of $90,000 this year which is expected to grow at 6.5% p.a.. The discount rate used to evaluate such a business is 14.5%. The offer to purchase the business is $500,000. Evaluate this project and identify if it is worth buying.

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Finance Basics: The discount rate used to evaluate such a business is 145
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