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ABC is considering acquiring XYZ and has compiled this information on XYZ: The applicable tax rate is 30 percent and the terminal value of XYZ

ABC is considering acquiring XYZ and has compiled this information on XYZ:

The applicable tax rate is 30 percent and the terminal value of XYZ as of Year 3 is $2.5 million. What is PV0 of this acquisition if the discount rate is 7.1 percent? Group of answer choices $2,499,003 $2,662,398 $3,309,482 $2,138,316 $3,106,048

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