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A private equity firm is aiming to buy a company. Under private equity ownership, the company will earn an annual cash flow of $$mm up

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A private equity firm is aiming to buy a company. Under private equity ownership, the company will earn an annual cash flow of $$mm up to infinity. The first cash flow is expected next year. The estimated IRR is 10%. What is the investment outlay (in millions) closest to? a. 40.00 b. 0.40 c. 3.64 d. 4.00

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