Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1.4 million. Its depreciation and capital expenditures will both be $300,000 each, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $100,000 over the next year. The tax rate is 35%. If the firms cost of capital is 12% and the free cash flows are expected to increase at 3% per year in perpetuity, what is the firms enterprise value?

$9,000,000

$11,571,429

$13,522,625

$10,125,843