What is the present value of technology

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Reference no: EM132014601

Shawn Paschal has been working on an advanced technology for use in the green fuel production at King Fisher Aviation. He is almost finished with the technology and anticipates the first cash flow from the technology to be $200,000 received 2 years from today. Subsequent annual cash flows will grow at 4.5 percent in perpetuity. What is the present value of the technology if the discount rate is 12 percent?

Reference no: EM132014601

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