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Keyboards R Us is considering the purchase of Mouse Incorporated. Keyboards believes that Mouse Company can generate cash flows of $ 6 , 2 0
Keyboards R Us is considering the purchase of Mouse Incorporated. Keyboards believes that Mouse Company can generate cash flows of $
$ and $ over the next three years, respectively. After that time, they feel the business will be worthless. Keyboards has determined that a
rate of return of percent is applicable to this potential purchase. What is the most that Keyboards R Us should pay today to buy Mouse Company?
Multiple Choice
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$
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