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Bentura is expected to generate R100 000 of net cash flows next year, R120 000...

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Finance

Bentura is expected to generate R100 000 of net cash flows next year, R120 000 the year after, and R150 000 for the following three years. It is expected that the company could be sold for R500 000 at the end of the fifth year. The owners of Bentura, who would like to sell their company, strongly believe that their investment in the company should generate a 10 percent return. Required: What is the minimum price at which they should sell the company?

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