Sparkling Water, Incorporated, expects to sell $3\mathrm{.}7$ million bottles of drinking water each year in perpetuity. This year each bottle will sell for $$1\mathrm{.}46$ in real terms and will cost $$\mathrm{.}82$ in real terms. Sales income and costs occur at year$-$end. Revenues will rise at a real rate of $1\mathrm{.}4$ percent annually, while real costs will rise at a real rate of $1\mathrm{.}1$ percent annually. The real discount rate is $7$ percent. The corporate tax rate is $24$ percent. What is the company worth today?Problem $6-20$ Inflation and Company Value

Sparkling Water, Incorporated, expects to sell $3\mathrm{.}7$ million bottles of drinking water each

year in perpetulty. This year each bottle will sell for $$1\mathrm{.}46$ in real terms and will cost $$\mathrm{.}82$

in real terms. Sales income and costs occur at year$-$end. Revenues will rise at a real rate

of $1\mathrm{.}4$ percent annually, while real costs will rise at a real rate of $1\mathrm{.}1$ percent annually. The

real discount rate is $7$ percent. The corporate tax rate is $24$ percent. What is the

company worth today? $($Do not round Intermedlate calculatlons and enter your answer

In dollars, not millions of dollars, rounded to the nearest whole number, e$.$g$.,$

$1,234,567.$

Answer is complete but not entirely correct.

Value of the firm

$

$39,345,665$