Question: You are determining whether or not to acquire a new company or not. You have the following information available: Year 1 Cash Flow = $

You are determining whether or not to acquire a new company or not. You have the following information available:
Year 1 Cash Flow = $10,000
Year 2 Cash Flow = $20,000
Year 3 Cash Flow = $50,000
Discount rate =10%
Long-term Cash Flow growth rate is 5%.
You are using a 3-year financial model with a terminal value for all years post year 3.
What is the total PV of cash flows for this company?

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