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15 Marko, Inc c, is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of 56,000, $11,000, and $17.200
15 Marko, Inc c, is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of 56,000, $11,000, and $17.200 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 14 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC CO. 16. You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $1,500 today and both accounts have an annual interest rate of 8 percent. How much more interest will you receive in the 8th year in the account that pays compound interest
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