Calculate the value of business of lilac inc

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Problem

Lilac, Inc. uses a discount rate of 17.5% its expected long-term sustainable growth rate is 1.5%. The net cash flows from operations of the company for the previous years are provided below.

Year Net          Cash Flow
2009               $190,835
2010               215,648
2011               185,965
2012               248,752
2013               221,960

Calculate the value of business of Lilac, Inc.

Reference no: EM131902091

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