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Suppose the after-tax terminal value is $43,000. Calculate the present value of the after-tax terminal value if the investment life is 3 years, the risk
Suppose the after-tax terminal value is $43,000. Calculate the present value of the after-tax terminal value if the investment life is 3 years, the risk free discount rate is 10%, the risk premium is 1.5% and the tax rate is 20%.
a. $43,000
b. $33,021.78
c. $32,306.78
d. $32,500
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