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Question 19 Estimate a ventures terminal value based on the following information: current years net income = $20,000; next years expected cash flow = $26,000;
Question 19
Estimate a ventures terminal value based on the following information: current years net income = $20,000; next years expected cash flow = $26,000;
constant future growth rate = 7%; and venture investors required rate of return = 20%.
A. | $214,000
| |
B. | $285,714
| |
C. | $200,000
| |
D. | $153,846 |
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