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The owner of a small business expects to generate a profit of $100,000 per year for 2 years and is going to sell the firm

The owner of a small business expects to generate a profit of $100,000 per year for 2 years and is going to sell the firm at the end of the second year for $800,000. The owner believes that the appropriate discount rate for the firm is 10 percent per year. What is the value of the small business based on the assumptions that the owner has set?

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