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Last year, a gourmet coffee shop located in New York Citys Grand Central Station, with a 50-year lease, produced annual cash flows of $400,000 (after

Last year, a gourmet coffee shop located in New York Citys Grand Central Station, with a 50-year lease, produced annual cash flows of $400,000 (after all expenses were deducted). If the stores cash flows are expected to grow at 3% per year (due to inflation), and similar businesses are valued using an annual interest rate of 7%, discuss/explain how you would estimate the value of this coffee shop. What TVM concept(s) or method(s) would you use?

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