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Gina Corp. runs a manufacturing business. For this fiscal year, it estimates its net cash flow will be $250,000. Due to the competition, the company
Gina Corp. runs a manufacturing business. For this fiscal year, it estimates its net cash flow will be $250,000. Due to the competition, the company expects its net cash flows will decrease at 3% per year in perpetuity. The appropriate discount rate of the company is 5%. All net cash flows are received at year-end. What is the present value of the cash flows from the companys operations?
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