Marko, Incorporated, is considering the purchase of ABC Company Marko believes that ABC Company can generate cash flows of $6,500, $11,500, and $17,700 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 12 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Company?
Multiple Choice
$29,109.63
$35,700.00
$25,415.81
$38,734.50
$27,569.81