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You want to purchase a business with the following cash flows: Year one $100,000 Year two $150,000 Year three $200,000 Year four $250,000 How much

You want to purchase a business with the following cash flows:

  1. Year one $100,000
  2. Year two $150,000
  3. Year three $200,000
  4. Year four $250,000

How much would you pay for this business today assuming you require a 14% return to make this deal? Explain.

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