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Debra King wants to open a restaurant in a historic building. The property can be leased for 2 0 years but not purchased. She believes

Debra King wants to open a restaurant in a historic building. The property can be leased for 20 years but not purchased. She believes her restaurant can generate a net cash flow of $69,000 the first year and expects an annual growth rate of 6 percent thereafter. If a discount rate of 16 percent is used to evaluate this business, what is the present value of the cash flows that it will generate?

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