Marko inc is considering the purchase of abc co marko, Ask an Expert

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Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $4,800, $9,800, and $16,000 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 11 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

$32,895.00

$30,600.00

$22,528.29

$25,289.18

$23,977.29

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91583779

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