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Company A is analyzing the opportunity to acquire Company B. Company A analyzes the periodic cash flows from this investment year by year up through

Company A is analyzing the opportunity to acquire Company B. Company A analyzes the periodic cash flows from this investment year by year up through year 5. To capture the value of all cash flows arriving in year 6 and beyond, Company A estimates the investment's terminal value. Cash flow in year 5 is $1,000,000 and is expected to grow at 4% per year indefinitely. The discount rate applied to this acquisition is 10%. What is the terminal value of this investment expressed in today's dollars (i.e., year 0)?

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