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Zalinsky is considering the purchase of Callahan Auto. Zalinsky believes that Callahan Auto can generate cash flows of $ 5 , 2 0 0 ,
Zalinsky is considering the purchase of Callahan Auto. Zalinsky believes that Callahan Auto can generate cash flows of $ $ and $ over the next three years, respectively. After that time, he feels the business will be worthless. Zalinsky has determined that a rate of return of percent is applicable to this potential purchase. What is Zalinski willing to pay today to buy Callahan Auto?
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