The Expected Net Cash Flows of Advantage Leasing for the Next

question 10

Multiple Choice

The expected net cash flows of Advantage Leasing for the next three years are $42,000,$49,000,and $64,000,respectively.After three years,the growth rate of these cash flows will be a constant 2 percent annually.The WACC is 8 percent.What is the present value of the terminal value?

• A)$881,822
• B)$863,689
• C)$959,259
• D)$910,444
• E)$828,406

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