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Southeastern travel is considering acquiring sunshine tour. management believes sunshine tour can generate cash flows of $157,000, $200,000, and $235,000, 180,000 over the next four
Southeastern travel is considering acquiring sunshine tour. management believes sunshine tour can generate cash flows of $157,000, $200,000, and $235,000, 180,000 over the next four years, respectively. after that time, they feel the business will be worthless, Southeastern travel has determined that a 11.5 percent rate of return is applicable to this acquisition. what is southern travel willing to pay today to acquire sunshine tour?
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