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Net cash flow for this year was $ 4 0 0 , 0 0 0 . Next year, you estimate that net cash flow will

Net cash flow for this year was $400,000. Next year, you estimate that net cash flow will be $425,000; the following year you estimate $450,000; the year after that and the terminal year, you estimate $475,000. Assuming the present value of outstanding debt is $125,000, the discount rate is 14%, and the perpetual growth rate beyond the terminal year is 1.5%, what is the fair market value of your sporting goods store?

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