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The company has free cash flows of $50 in year 1, $70 in year 2, and $100 in year 3. The continuing value for cash

The company has free cash flows of $50 in year 1, $70 in year 2, and $100 in year 3. The continuing value for cash flows generated beyond year 3 is $1,200. If the weighted average cost of capital is 8%, what is the value of the companys operation?

a. $1,068 b. $1,138 c. $1,315 d. $1,420

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