Abdullah is concerning about buying of a gift shop operating at AEON Shah Alam. Based on the shop financial statement, Abdullah estimated the revenue of the shop is RM275,000 per year. The shop cost of goods sold are RM65,000. The other expenses per year for the shops as follows: Expenses Wages and Salaries Utilities charges Repair and maintenance Printing and stationery Promotion Other expenses RM 137,500 9,000 10,000 3,000 5,500 2,200 Based on the information given, compute the selling price of the gift shop if the cash flow discounted at 10 percent using discounted cash flow method.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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(b) Abdullah is concerning about buying of a gift shop operating at AEON
Shah Alam. Based on the shop financial statement, Abdullah
estimated the revenue of the shop is RM275,000 per year. The shop
cost of goods sold are RM65,000. The other expenses per year for
the shops as follows:
Expenses
Wages and Salaries
Utilities charges
Repair and maintenance
Printing and stationery
Promotion
Other expenses
RM
137,500
9,000
10,000
3,000
5,500
2,200
Based on the information given, compute the selling price of the gift
shop if the cash flow discounted at 10 percent using discounted cash
flow method.
Transcribed Image Text:(b) Abdullah is concerning about buying of a gift shop operating at AEON Shah Alam. Based on the shop financial statement, Abdullah estimated the revenue of the shop is RM275,000 per year. The shop cost of goods sold are RM65,000. The other expenses per year for the shops as follows: Expenses Wages and Salaries Utilities charges Repair and maintenance Printing and stationery Promotion Other expenses RM 137,500 9,000 10,000 3,000 5,500 2,200 Based on the information given, compute the selling price of the gift shop if the cash flow discounted at 10 percent using discounted cash flow method.
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