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A firm is going through an expansion period with volatile free cash flows expected for the next 5 years. The firm has a current value

A firm is going through an expansion period with volatile free cash flows expected for the next 5 years. The firm has a current value of operations of $10,720,000 and the weighted average cost of capital of 11 percent. If the horizon value at the end of Year 5 is $16,870,000, what is the percentage of the value of operations due to long term cash flows?

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