What is the present value of the cash flows

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Question - Cash Flow Valuation - Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $345,000. The company is an ongoing operation, but it expects competitive pressures to erode its real cash flows at 3 percent per year in perpetuity, appropriate real discount rate for the company is 4 percent. All cash flows are received at year-end. What is the present value of the cash flows from the company's operations?

Reference no: EM133182785

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