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An owner is trying to entice some potential stockholders and they would like an estimate the value of the company over a 5 -year period.
An owner is trying to entice some potential stockholders and they would like an estimate the value of the company over a 5 -year period. The shareholders' required rate of return on their capital is 8%. The owner has estimated the free cash flows over the next 5 years to be as given in the table below. What is the net present value of the firm for this 5 -year period? a. approximately $1 million b. approximately $10 million c. approximately $6 million d. approximately $20 million
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