What is the present value of Company ABC

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Question - Let's assume Company XYZ wants to buy Company ABC at Php1,000,000. It takes a careful look at Company ABC's projections for the next 5 years. Company ABC's projected cash inflow would be Php150,000 in year 1, Php200,000 in year 2, and Php225,000 for the next 3 years. What is the present value of Company ABC if the interest rate is 8%?

Reference no: EM133094811

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