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Tom has hired an investment bank to help sell his successful brew pub. The bankers have determined three potential values for Tom's business: $4m, $8m,
Tom has hired an investment bank to help sell his successful brew pub. The bankers have determined three potential values for Tom's business: $4m, $8m, or $12m.
The expected future cash flows are the same in each scenario.
If the Present Value factor (Discount Rate) INCREASES, the value of Tom's business would?
Group of answer choices
Stay the same
Increase
Always triple
Decrease
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