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
B) $863,689
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