Determine what is the value fo the firm

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Over the next three years, a firm is expected to earn economic profits of $120,000 in the first year, $140,000 in the second year, and $100,000 in the third year. After the end of the third year, the firm will go out of business. If the risk adjusted discount rate is 10 percent for each of the next three years, the value fo the firm is?

Reference no: EM13209733

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