Question: Consider a firm that is expected to generate a net cash flow of $10,000 at the end of the first year. The cash flows will

Consider a firm that is expected to generate a net cash flow of $10,000 at the end of the first year. The cash flows will increase by 3 percent a year for seven years and then the firm will be sold for $120,000. The relevant discount rate for the firm is 11 percent. What is the present value of the firm?

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