NFTulips, a flower shop that is pivoting to the blockchain, has assets in place that will generate $220,000 in OCF next year, which is forecast to grow at 5% in perpetuity.

The firm also has debt outstanding; $2M face value of bonds with a 7% coupon rate. The bonds have 6 years remaining until maturity but the firm is planning to roll over the debt when that day arrives. (Although the 7% coupon rate is a semiannual APR you can treat it as just paying 140,000 per year in perpetuity).

Using a discount rate of 13%, what is the fundamental value of the firm? Answer in millions i.e. $4.1 million = enter 4.1