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A certain companys cash flows are expected to grow at a rate of 15% for the next eight years before tapering off to a constant

A certain companys cash flows are expected to grow at a rate of 15% for the next eight years before tapering off to a constant growth rate of 6% forever. The current years cash flow is $50,000 (already paid). If the firms cost of capital is 20%, what should its fair market value be? Round your answer to the nearest dollar.

A. $641,583 B. $331,856 C. $309,727 D. $888,126

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