1. 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 the 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 $3,600,000. If Christine has a cost of capital of 13 percent, how much are these future cash flows worth today?

A) $2,265,405.02

B) $4,350,000.00

C) 2,273,957.01

D) $723,966.81

E)2,482,509.00

F) 2,219,681.02

G) 2,211,129.03