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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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