Phillips industries runs a small manufacturing operation, Ask an Expert

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Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $155,000. Phillips is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 4 percent per year in perpetuity. The appropriate real discount rate for Phillips is 10 percent. All net cash flows are received at year-end.

Required:
What is the present value of the net cash flows from Phillips's operations? (Do not include the dollar sign ($).Round your answer to 2 decimal places. (e.g., 1,234,567.89))

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9980138

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