Cash flow valuation sandbelt industries

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Cash Flow Valuation Sandbelt Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $376,000. The company is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 2.6 percent per year in perpetuity. The appropriate real discount rate for the project is 2.9 percent. All net cash flows are received at year-end. What is the present value of the net cash flows from the company's operations?

Reference no: EM133056603

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