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Assume that a frm will generate the following cash flows. (Ignore liquidation value and initial investment.) Also assume that the interest rate you would receive
Assume that a frm will generate the following cash flows. (Ignore liquidation value and initial investment.) Also assume that the interest rate you would receive on an alternative investment of equal risk is 10%
End of year 1: $110
End of year 2: $242
End of year 3: $133.10
What is the value of the firm based on these cash flows?
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