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Jimmy has a business that generates $100,000 per year in income. Tom wants to buy the business from Jimmy. Assuming a 5 year valuation period,

Jimmy has a business that generates $100,000 per year in income. Tom wants to buy the business from Jimmy. Assuming a 5 year valuation period, and a discount rate of 7.5% per year, how much is Jimmy's business worth today?

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$404,588.49

$69,655.86

$612,892.08

$580,839.10

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