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4) ABC Company is considering acquiring XYZ Company. Management believes XYZ can generate cash flows of $324,000, $332,000, and $345,000 over the next three years,

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4) ABC Company is considering acquiring XYZ Company. Management believes XYZ can generate cash flows of $324,000, $332,000, and $345,000 over the next three years, respectively. After that time, they feel the business will be worthless. If the desired rate of return is 8.5 percent, what is the maximum ABC should pay today to acquire XYZ

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