Firm is expected to earn economic profit

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Over the next three years, a firm is expected to earn an economic profit of $900,000 in the first year, $800,000 in the second year, and $700,000 in the third year. After the end of the third year, the firm goes out of business. If the risk-adjusted discount rate is 11 percent for each of the next three years, the value of the firm is $____________. The firm can be sold today for a price of $____________>

Reference no: EM13854216

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