The estimated growth rate is 17% for first 3 years, after which the firm slows down to. Steady state growth rate of 8.5%. Year 1 revenue is &2,000,000. Net working capital is estimated to be 20% of sales per year. The firms also builds up initial inventory of 15% of the years anticipated cogs before beginning the project. Cogs is 50% of annual sales for each year and sg&a is 10% of revenue per year. Depreciation is $250,000 per year in addition the firm

Invest in fixed assets every year to the amount of &195,000. Firms tax rate 35% and firms Wacc is 15%.

Firm will lot try to recoup remaining working capital at end year 3. And will not make adjustments for gross fixed assets and depreciation end of year 3

What is terminal value or steady state value