The following table provides the annual profits of two startup tech firms along with their present value of profits calculated at an interest rate of 5 percent. Which firm would be your recommendation...


The following table provides the annual profits of two startup tech firms along with their present value of profits calculated at an interest rate of 5 percent. Which firm would be your recommendation for an acquisition? Explain.








































YearFirm A
Profits		Firm B
Profits
1$1,000,000$5,000,000
2$1,200,000$2,000,000
3$1,400,000($800,000)
4$1,500,000$500,000
5$1,600,000($100,000)
PV$5,737,885$6,217,892


Jun 03, 2022
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