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Suppose that you just opened a new sporting goods store and completed your first year of business. Net cash flow for this year was $400,000.

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Suppose that you just opened a new sporting goods store and completed your first year of business. 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? $7,679,570.64$4,004,570.64$3,879,570.64$5,114,678.88

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