David west has been working on a new technology to improve


David West has been working on a new technology to improve manufacturing performance. His technology will be available in the near term. He estimates his first annual cash flow from the technology to be $500,000, received three years from today. Subsequent annual cash flows will grow at 5 percent in perpetuity. What is the present value of the technology if the discount rate is 10 percent?

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Financial Management: David west has been working on a new technology to improve
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