What is the present value of the terminal value


The net cash flows of Advantage Leasing for the next 3 years are $42,000, $49,000 and $64,000 respectively, after which the growth rate will be a constant 2% with a WACC of 8%. What is the present value of the terminal value?

Select one:

a. 51,822

b. 55,967

c. 59,259

d. 60,444

e. None of these

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Finance Basics: What is the present value of the terminal value
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