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13F Over the next three years, a firm is expected to earn economic profit of $200,000 in the rst year, $300,000 in the second year,

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13F Over the next three years, a firm is expected to earn economic profit of $200,000 in the rst year, $300,000 in the second year, and $250,000 in the third year. After the end of the third year, the rm goes out of business. a. If the riskadjusted discount rate is 9 percent for each of the next three years, the value of the rm is $ . The rm can he sold today for a price of $ b. If the riskadjusted discount rate is 14 percent for each of the next three years, the value of the rm is $ . The firm can he sold today for a price of $

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