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Business, 14.07.2019 00:30 sloane50

Phillips industries runs a small manufacturing operation. for this fiscal year, it expects real net cash flows of $197,000. the company is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 6 percent per year in perpetuity. the appropriate real discount rate for the company is 11 percent. all net cash flows are received at year-end. what is the present value of the net cash flows from the company's operations?

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