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You are planning to sell your business and are trying to determine what the sale price should be. A method of valuing a company is to calculate the present value of future cash flows over a period

You are planning to sell your business and are trying to determine what the sale price should be. A method of valuing a company is to calculate the present value of future cash flows over a period of time. You decide to value your company based on the profits of the company for the next 10 years using a discount rate of 12%. You know that this year's profit will be $80,000 and expect the annual profit to increase by $4,500 per year. What is the company's value?

Apr 04 2020 View more View Less

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