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A dairy farm is expected to make annual cash flow forever. The cost of capital for the farm is 12.6%. The next annual cash flow
A dairy farm is expected to make annual cash flow forever. The cost of capital for the farm is 12.6%. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 4.3%. What is the value of the farm if you know that the cash flow in 5 years from today is expected to be $51000?
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