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Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,400, $10,400, and $16,600 over the
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,400, $10,400, and $16,600 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 21 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.? Multiple Choice o $20,936.42 o $23,136.80 o $24,927.80 o $32,400 $32,400 o $26,373.66
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