Maize & Blue Medical Supply (MBMS) is a leader in the production and sales of X-ray machines. This past year, MBMS posted $35,000,000 in revenue with a cost of goods sold of $22,000,000 and SG&A expenses of $2,000,000. They are projecting a growth of these numbers of 8%, 6%, and 2%, respectively, over the next 5 years. When considering their short term assets and obligations, MBMS has $4,000,000 in accounts receivable, $3,000,000 in accounts payable and $5,000,000 of inventory. The company's revenue growth will be largely driven by spending $20,000,000 today on an equipment upgrade, which will also lead to a $2,000,000 increase in accounts receivable next year. The expenditure for the equipment upgrade can be depreciated using the straight line method over the next 5 years. MBMS faces a 21% tax rate, a 7% discount rate and they are projected to be worth $236,000,000 at the end of our valuation horizon of 5 years.

(1) Create a cash flow model for Maize & Blue.

(2) What is the value of MBMS today?