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Estimate a venture's cash flow expected next year based on the following information: current year's net sales = $400,000; terminal value = $500,000; constant future

Estimate a venture's cash flow expected next year based on the following information: current year's net sales = $400,000; terminal value = $500,000; constant future growth rate = 10%; and venture investors' required rate of return = 20%. (hint: keep simple terminal value equation in mind)

a. $50,000

b. $40,000

c. $80,000

d. $60,000

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