In 1999, we bought a small country motel. As a small business owner, we plan to run the motel for 10 years, then sell it on the market. The after-tax market value of the motel at the end of year 10 (i.e., 2009) is estimated to be $429,210. When forecasting 10-year pro-forma income statements, sales and expenses (excluding depreciation) are based on the year 1999 dollars. The annual depreciation tax shield is $6,061. The annual operating FCF (i.e., the "OCF" as referred in the class lecture) is $66,639. We finance the purchase of the motel by debt (mortgage). The current balance (1999) of the debt: $295,625. Tax rate is 30.304%. Real risky discount rate: 20%; Real risk-free discount rate: 7% Nominal risky discount rate is 23.6%; Nominal risk-free discount rate is 10.21%

a. What is the present value of the depreciation tax shield in 1999?

b. What is the present value of the operating FCF in 1999?

c. What is the value of the motel in 1999?

d. What is the value of the equity in 1999?