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Estimate a venture's terminal value based on the following information: current year's net income = $20,000; next year's expected cash flow = $26,000; constant future

Estimate a venture's terminal value based on the following information: current year's

net income = $20,000; next year's expected cash flow = $26,000; constant future growth

rate = 7%; and venture investors' required rate of return = 20%.

A. $156,846

B. $285,714

C. $200,000

D. $150,000

E. $428,571

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