Victoria Enterprises expects earnings before interest and taxes

(EBIT)

next year of

$1.4

million. Its depreciation and capital expenditures will both be

$307,000,

and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by

$52,000

over the next year. Its tax rate is

22%.

If its WACC is

8%

and its

FCFs

are expected to increase at

5%

per year in perpetuity, what is its enterprise value?