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ABC's analyst projects that ABC's expansion will add $75,000 in incremental after-tax free cash flows in year 1. After year 1 your analyst believes that
ABC's analyst projects that ABC's expansion will add $75,000 in incremental after-tax free cash flows in year 1. After year 1 your analyst believes that the annual growth rate will be 3.75% in perpetuity.
Assuming that ABC's WACC is 10.75%, what is the PV of these incremental free cash flows?
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