Horton Books expects to generate cash flows of $129,600 for the next two years. At the end of the two years, the business will be sold for an estimated $3.2 million. What is the value of this business at a discount rate of 14 percent?

Multiple Choice

• $2,848,392

• $2,704,655

• $2,675,703

• $2,284,644

• $2,900,411