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A new restaurant expects to generate a $700,000 cash flow in its first year of operation, $1,000,000 in its second, and $1,500,000 million in its third. The cash flows are expected to grow thereafter at a rate of 3.00% per year. The appropriate discount rate is 9.00% per year. Calculate the present value of future cash flows.

Round your answer to the nearest whole dollar.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92835999

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