Determine the future value of a target venture which has net income expected to be $40,000 at the end of four years from now. A comparable firm currently has a stock price of $20.00 per shares; 100,000 shares outstanding; and net income of $50,000.
A) $1.0 million
B) $1.4 million
C) $1.6 million
D) $2.0 million
Correct Answer:
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