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Theowner of a firm expects to make a profit of 10,000 for each of the next two years and to be able to sell the
Theowner of a firm expects to make a profit of 10,000 for each of the next two years and to be able to sell the firm at the end of the second year for 80,000. The owner of the firm believes that the appropriate discount rate for the firm is 15 percent. Calculate the value of the firm
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