What is present value of net cash flows from a+ operations

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A+ Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $155,000. A+ is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 5% per year in perpetuity. The appropriate real discount rate for Phillips is 11%. All net cash flows are received at year-end. What is the present value of the net cash flows from A+ operations?

Reference no: EM13302469

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