Given the following information on Tyson Woods, compute the company's Terminal Value (TV) at year 4.

Analysts expect next year's NOPAT (year 1) to be equal to $100.000, which will grow for the following 2 years (until year 3) at a rate of 5%. The expected LT g rate is 2%.

The structure of the NWC consists of: inventory 10% of NOPAT, receivables 15% of NOPAT, payables 20% of NOPAT.

Every year Tyson Woods invests $10.000 in Capex to improve its production capacity. The depreciation is assumed to be 8% of NOPAT.

Company WACC is 10%, cost of equity is 14% and the corporate tax rate is 30%.

A.

328,350

B.

1,288,454

C.

1,405,688

D.

112,445

E.

None of the above