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2. The TecOne Corporation is about to begin producing and selling its prototype product. Annual cash flows for the next five years are forecasted as:
2. The TecOne Corporation is about to begin producing and selling its prototype product. Annual cash flows for the next five years are forecasted as: YEAR CASH FLOW 1 $ 50,000 2 $ 20,000 3 $100,000 4 $400,000 5 $800,000 a. Assume annual cash flows are expected to remain at the $800,000 level after Year 5 (i.e., Year 6 and thereafter). If TecOne investors want a 40% rate of return on their investment, calculate the ventures present value. b. Now
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