Ambiance is considering the purchase of Hands Gallery. Ambiance believes that Hands Gallery can generate cash flows of
$5,800,$10,800
, and
$17,000
over the next three years, respectively. After that time, they feel the business will be worthless. Ambiance has determined that a rate of return of 12 percent is applicable to this potential purchase. What is the most Ambiance should be willing to pay today to buy Hands Gallery?

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Ambiance is considering the purchase of Hands Gallery. Ambiance believes that Hands Gallery can generate cash flows of

$5,800,$10,800

, and

$17,000

over the next three years, respectively. After that time, they feel the business will be worthless. Ambiance has determined that a rate of return of 12 percent is applicable to this potential purchase. What is the most Ambiance should be willing to pay today to buy Hands Gallery?

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