Before finalizing the deal, Christine needs to feel confident she is not overpaying. She estimates the cash flows Smith Brothers will generate over the next 4 years and then estimates a terminal value in year 5 that represents the companys value into perpetuity. The total cash flows she calculates from the three divisions (commercial fishing, wholesale seafood sales, and retail/restaurant sales) are as follows:

$100,000, $150,000, $200,000, $300,000, $3,200,000.

If Christine has a cost of capital of 13 percent, how much are these future cash flows worth today?

2,219,681.02

2,273,957.01

3,950,000.00

702,256.41

2,482,509.00

2,211,129.03

2,265,405.02