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Posted on Aug 07, 2024

You would like to buy out one small business which generating annual free cash flows of $ 1 0 0 , 0 0 0 .

You would like to buy out one small business which generating annual free cash flows of $

100, 000 .

If you believe the business will go on for the next

10

years and have zero salvage value, how much is the price of the business? Here we assume

6 %

APR.

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