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Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $190,000. Phillips is an ongoing operation, but

Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $190,000. Phillips is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 4% per year in perpetuity. The appropriate real discount rate for Phillips is 11%. All net cash flows are received at year-end. What is the PRESENT VALUE of the net cash flows from Phillips operations? Please show work

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