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Assuming a 40% tax rate, what is the company Threshold Sports, LLC worth? What is the net present value? Assume that Threshold will not need
Assuming a 40% tax rate, what is the company Threshold Sports, LLC worth? What is the net present value? Assume that Threshold will not need any additional net working capital in Year 2001, but will need an additional $95,000 NWC each year form 2002 to 2005. Use the growing perpetuity/constant growth model in order to estimate a terminal value for your cash flows.
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