Question
Cash flows from an e-commerce venture amount to $1 million in the current year, with an expected growth rate of 4% forever. Assuming a required
Cash flows from an e-commerce venture amount to $1 million in the current year, with an expected growth rate of 4% forever. Assuming a required rate of 12%, what is the value of this venture at the present time?
A. $12.5
B. $12,500,000
C. $12,500
D. $13,000,000
E. $125,000
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Financial Economics
Authors: Zvi Bodie, Robert C Merton, David Cleeton
2nd Edition
0558785751, 9780558785758
