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What is Marko willing to pay today to buy ABC Co

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Question - Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $15,000 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a 14 percent rate of return is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

A. $19,201.76

B. $21,435.74

C. $23,457.96

D. $27,808.17

E. $31,758.00

Reference no: EM132977104

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