Samsons snow plowing business has been around for the last 20 years, based in New Paltz, New York. Samson aims to retire this year and wants to come up with a valuation in order to sell the company. Next year, Samson expects his business generate $4500 in revenues on days that it snows more than 2 inches and no revenues otherwise. However, given that it costs money to run the snow plowing equipment, the company records $1200 in compensation and fuel costs when it snows. Furthermore, the company records a $10,000 fixed cost yearly, to maintain the equipment. On top of that, Samsons snow plow depreciates at $2000 per year. Samsons friends at the local meteorology station in New Paltz have calculated that there is a 9% chance that it snows more than 2 inches on any given day in the year. Despite global warming, Samson expects his revenues to increase by 5% for the first 2 years, before the revenue growth rate drops off to 3% for the last 2 years. His operating expenses are expected to stay the same. Sams cost of equity is 20% and his cost of debt is 11%. His business has as much equity as it has debt and he pays 28% in taxes every year. Finally, Samsons company has $50000 in debt (dont worry about interest expense) and $10000 in cash. Value Sams business using a probability-weighted DCF and be sure to show your work. (Make sure to discount the first year of cash flows, project cash flows for 5 years, and 2% growth rate for the terminal value).