DISCOUNTED CASH FLOW A firm that makes only gloves and scarves is considering selling the business. You are considering what it is worth. You want to look at on a 5 year basis and have the following data collected. Gloves sell at $24.95. But prices are expected to climb 5% per year. They cost $16.75 to make and costs are expected to climb 3.5% per year. You think you can sell 8000 pairs of gloves per year but grow that by 6% each year. Scarves sell at $35.99. Prices are expected to also climb 5% per year. They cost $27.50 to make but these costs are expected to rise by 4.25% per year. You think you can sell 7500 of them and growing by 4% each year. The business also has $35,000 of fixed costs that increase by 2.5% each year. To buy the business the cost looks to be all in $600,000. Of that amount you can depreciate $400,000 straight line over 4 years to a salvage value of $200,000 The company also needs $27,500 of working capital to start. The equipment to make scarves needs to be upgraded at a cost of $50,000 in year 2. It can be depreciated straight line over 3 years to a salvage value of $20,000. The equipment to make gloves needs to be upgraded at a cost of $30,000 in year 3. It can be depreciated straight line over 2 years to a salvage value of $10,000 You estimate at the end of year 5 you could sell the equipment for $350,000 Your company tax rate is 20% and your WACC is 9% Is this a good deal? What is the maximum that you would pay for the business?

With this prompt help me find the terminal value adjustment it is supposed to be $353,500 but i am not sure how it got calculated to the amount. Please show me steps to get to that value.