Calculate the fair market value of the asset

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An investment opportunity is not expected to have any cash inflows for the coming seven years. At the end of year eight, its expected cash flow is $1,791.28 and that is expected to grow by 4.6% per year in perpetuity. The required rate of return on the investment is 14% per year. Calculate the fair market value of the asset.

Reference no: EM132364461

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