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Question
Given the following inputs, compute the continuing value (CV) at time t in the economic-profit model. At time t invested capital equals $2,000 and ROIC equals 12 percent. The forecast for NOPLATt+1 is $240. The growth rate equals 2 percent, RONIC is 10 percent, and the WACC is 7 percent. The continuing value at time t is closest to:
a) $1,840.0
b) $1,428.6
c) $822.8
d) $414
Answer
This answer is hidden. It contains 14 characters.
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