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You are preparing an NPV for a new company.You expect the company will go on "forever", therefore you have to include a Terminal Value in your...


You are preparing an NPV for a new company. You expect the company will go on "forever", therefore you have to include a Terminal Value in your projection. Your projection is 5 years long, and you feel year 6+ cash flows will be the same as year 5 at $400,000. If you are using a discount rate of 8.00%, what Terminal Value do you include in your projection?

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