What is the present value of the net flows

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Question - The fishmonger operates in a small company that sells seafood. For this year Fiscal expects net cash flows, in real terms, of $ 355,000. The fishmonger is a going concern and expects competitive pressures to erode its cash flows. Real net cash at a rate of 11% per annum in perpetuity. The real discount rate appropriate for fishmongers is 14%. All net cash flows are received at the end of the year. What is the present value of the net flows from the operations of the fish shop?

Reference no: EM132929816

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