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A furniture store is expected to make annual cash flows forever. The cost of capital for the store is 1 2 . 0 0 percent.

A furniture store is expected to make annual cash flows forever. The cost of capital for the store is 12.00 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 2.50 percent. What is the value of the furniture store if the cash flow in 5 years from today is expected to be $300,000?

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