Question : You valuing your company because you would like to sell
You are valuing your company because you would like to sell it. A method of valuing a company is to calculate the present value of future cash flows over a period of time. You plan to value your company based on the profits of the company of the next 10 years and a discount rate of 8%. You know that this year's profit will $60,000 and expect this to increase by 5% per year period. What is the company's value?