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Gradient landscaping is thinking about buying a piece of property for a sod farm. They expect $20,000 in free cash flow next year and for

Gradient landscaping is thinking about buying a piece of property for a sod farm. They expect $20,000 in free cash flow next year and for cash flows will grow at 3% forever. Gradient maintain a 75% debt ratio, pays 8% pre-tax on their debt and 12% on their equity. Gradient pays taxes at a 30% rate.

What is the value of this project?

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