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Pharoah Energy Company owns several gas stations, Management is looking to open a new stathon...

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Finance

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Pharoah Energy Company owns several gas stations, Management is looking to open a new stathon in the wentern suburbs of Baltimore. One possibility that managers at the company are evaluating is to take over a station located at a site that has been ireated. from the county. The lease, originally for 99 years, currently has 73 years before expiration. Thio gas station generateda nef canh flow of \$87.710 in the most recent year, and the current owhers expect an annual gromthrate of 6.3 percent. If pharoah Enerry uses a. discount rate of 12,30 percent to evaluate such businesses, What is the present value of this growing annuity? (Rourd foctor values fo 6 . decimal places, es. 1.521253 and finol answer to 2 decimal ploces, es. 15.21

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