Calculate the value of the technology today

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Tom Tom Co. has been working on new technology. This new technology will be available in the near term, and the firm's CEO anticipates the first cash flow to be $300,000, received 5 years from today. Subsequent annual cash flows will grow at 3% in perpetuity. Calculate the value of the technology today if the discount rate is 12%?

Reference no: EM132648612

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