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Century Cars, Inc is a company without any debt. The firm generates $583,250 in pretax cash flows, and the cash flow is taxable. The appropriate
Century Cars, Inc is a company without any debt. The firm generates $583,250 in pretax cash flows, and the cash flow is taxable. The appropriate discount rate for these cash flows is 9.27 percent. The tax rate is 35 percent. Calculate the value of Century Cars, Inc without any debt.
Assume that all conditions identified by the M&M Propositions 1 and 2 with taxes apply.
Round the answer to two decimals.
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