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What is Fair Market Value of Cash Flows Analysis about?
P25,000 every quarter for 5 years R: 8% t= 5 n= 20 m= 4 Formula: Present value of annuity of 25,000 every quarter for 5 yrs = 25,000 = 438,849.71 Fair Market Value = 438,849.71 Compare FV: Company #1 FV = 118,547.18 + 220,669.25 = 339,216.43 Company #2 FV = 438,849.71 Company #2 has a higher fair market value. Therefore, Company #2 offer is better.
- Author
- SUNFLOWER - ORDILLANO KRIZIAH LEI B.
- Language
- EN