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Olsen electric has a line of small motors that no longer fits the corporate image. They are attempting to establish a minimum value for


 

Olsen electric has a line of small motors that no longer fits the corporate image. They are attempting to establish a minimum value for the small motors line. Olsen currently receives $250,000 per year in positive cash flows. If the discount rate is 16% what is the value if it thinks the life of the small motor line is: a) 10 years b) 20 years c) infinity (forever)

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