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Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can...

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Question

Finance

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,300, $10,300, and $16,500 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 15 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

potential answers are:

$21,010.99

$32,100.00

$35,791.50

$24,910.35

$23,245.99

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