Firm Valuation: Discounted Cash Flow The Mann Corporation is a small manufacturer of office products. Until recently, the company was all equity-financed (shareholders' equity totaled $20 million), having a cost of equity of 11 percent.

The company decided to expand its productive capacity by investing in new plant and equipment at a cost of $12 million. Executives at Mann decided to finance the capital investment with lower-costing debt financing that carried an interest rate of only 8%.

The CEO of The Mann Corporation wondered what the company was now worth following the plant expansion; consequently, the CEO instructed the company's CFO to prepare a forecast of the firm's free cash flows. The CFO's forecast was as follows:

(in thousands)	Year 1	Year 2	Year 3	Year 4
Free cash flow	$2,500	$4,675	$5,573	$5,930
Terminal value				30,000

Required 1. Calculate the value of The Mann Corporation.

Do not round your computations until your final answer. Round final answer to the nearest thousand dollar.

$Answer

It is not 34,966, that is incorrect.