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The owner of a firm expects to make a profit of $ 1 0 , 0 0 0 for each of the next five years

The owner of a firm expects to make a profit of $10,000 for each of the next five years and to be able to sell the firm at the end of the fifth year for $50,000. The owner of the firm believes that the appropriate discount rate for the firm is 15 per cent. Calculate the value of the firm.

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