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Question 6 (of 10) Value: 1.00 points Mark Weinstein has been working on an advanced technology in laser eye surgery. His tec
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Answer #1

Value after year 2=(Cash flow for year 2*Growth rate)/(Discount rate-Growth rate)

=(168,000*1.028)/(0.11-0.028)

=$2106146.34

Hence present value=Future cash flows and values*Present value of discounting factor(rate%,time period)

=168,000/1.11^2+2106146.34/1.11^2

=$1845748.19(Approx).

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