Cash flow valuation-phillips industries

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Cash Flow Valuation

Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real cash ?ows of $192,000. The companyr is an ongoing operation, but it expects competitive pressures to erode its real cash flows at 4 percent per year in perpetuity. The appropriate real discount rate for the company is 10 percent All cash flows are received at 1year-end. What is the present value of the cash flows from the company's operations?

Reference no: EM133075497

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