Mona has a supermarket that she wants to sell today. The expected revenues of the supermarket are hereunder. Mona has found a buyer who is willing to buy it for LE 3 milion. If interest rate is 11%, Should mona accept or refuse the offer? Why?
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5
6
7
8
9
10
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year
2024
2025
2026
2027
2028
2030
2031
2032
2033
2035
2036
2037
2038
2040
2041
Expected revenues
110,000.00
132,000.00
158,400.00
190,080.00
228,096.00
273,716.00
328,460.00
394,152.00
472,983.00
567,580.00
681,096.00
817,316.00
980,780.00
1,176,936.00
1,412,324.00
r
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
payment
3,000,000
Answer & Explanation
Solved by verified expert
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