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Shelton Enterprises is expecting tremendous growth from its newest boutique store. Next year the store is expected to bring in net cash flows of $675,000.
Shelton Enterprises is expecting tremendous growth from its newest boutique store. Next year the store is expected to bring in net cash flows of $675,000. The company expects its earnings to grow annually at a rate of 13 percent for the next 20 years. What is the present value of this growing annuity if the firm uses a discount rate of 18 percent on its investments?
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$5,478,320
$7,821,123
$6,750,000
$6,448,519
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