Cash Flow Valuation Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $235,000. The company is an operation, but it expects competitive pressures to erode its real net cash flows at 3 percent per year in perpetuity. The appropriate real discount rate for the company is 4 percent. All net cash flows are received at year-end. What is the present value of the net cash flows from the company's operations? 18. ongoing