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

Question

Quizplus · Accepted Answer

The Answer of 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

The Expected Net Cash Flows of Advantage Leasing for the Next