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Home Depot is evaluating the purchase of Lowes. HD believes that Lowes can generate cash flows of $6,500,$11,500, and $17,700 over the next three years,

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Home Depot is evaluating the purchase of Lowes. HD believes that Lowes can generate cash flows of $6,500,$11,500, and $17,700 over the next three years, respectively. After that time, they feel the business will be worthless. Home Depot has determined that a rate of return of 12 percent is applicable to this potential purchase. What is Home Depot willing to pay today to buy Lowes? Multiple Choice $29,109.63 $27,569.81 $25,415.81 $35,700.00

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