Present value of the cash flows

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For this fiscal year, it expects real cash flows of $193,000. The company is an ongoing operation, but it expects competitive pressures to erode its real cash flows at 5 percent per year in perpetuity. The appropriate real discount rate for the company is 11 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: EM133068797

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