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A company is considering the purchase of a new production line that it has estimated will generate the following annual cash flows: $5,133,007 per year
A company is considering the purchase of a new production line that it has estimated will generate the following annual cash flows: $5,133,007 per year for 5 years, followed by $4,636,555 per year for 2 years, followed by $8,782,017 per year for 10 years. All cash flows will be received at the end of the year. If the company's required rate of return is 9.3%, what is the maximum price at which the company will purchase this new line? State your answer to the nearest whole dollar.
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