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ABC Inc., is expecting a cash flow of $2.2 million next year. After year 1 , the company expects the cash flows to grow indefinitely
ABC Inc., is expecting a cash flow of $2.2 million next year. After year 1 , the company expects the cash flows to grow indefinitely at the rate of 3% every year. Assume that the opportunity cost of capital is 10%. What is the terminal value of the firm at year 1 ? $2 million $32.37 million \$31.429 million $2.266 million Question 2 2.5pts Refer to the previous problem. What is the value of the firm today? $2 million $32.37 million \$31.429 million $2.266 million
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