question archive 1)Chanel wants to open a new luxury boutique in the Philippines
1)Chanel wants to open a new luxury boutique in the Philippines
Subject:FinancePrice: Bought3
1)Chanel wants to open a new luxury boutique in the Philippines.
The expected profits over the next five years are:
1) P500,000
2)P550,000
3)P620,000
4)P700,000
5)P720,000
After that, profits will be a constant P750,000 per year for the next 10 years at which time the boutique is able to recover their capital. If 7% is the appropriate discount rate for the first five years and is 9% after that, what is the present value of the boutique?
