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Imagine that in the terminal year of the model (year 11), EBIT is 200, tax rate is 20% and reinvestment rate is also 20%. Growth

Imagine that in the terminal year of the model (year 11), EBIT is 200, tax rate is 20% and reinvestment rate is also 20%. Growth rate is 2% and WACC is 10%. What is the terminal value?

1) 2000

2) 1800

3) 1600

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