The calculation of the purchase price of an on-going business should include its residual value.

Name: The calculation of the purchase price of an on-going business should include its residual value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The residual value of an on-going business is the estimated value of the business at the end of its useful life. This value should be included in the calculation of the purchase price because it represents the potential future value of the business.

The Calculation of the Purchase Price of an On-Going Business