You are valuing a company and assume mid-year discounting. Last year free cash flow was 1,000, interest expense was 50, depreciation expense was 100, and capital spending was 1,500. You expect sales to grow at a real rate of 20% for the next 2 years and then to stabilize at a real rate of 10%. Additionally, you expect all expenses except depreciation to remain a constant percentage of sales (i.e. free cash flow less the depreciation tax shield will grow at the sales growth rate). Since the production process does not require many fixed assets, depreciation will remain 100 forever, and the depreciation tax shield is risk-free. Assume that the firms effective tax rate is 30%, the inflation rate is 3%, the real risk-free rate is 7% and the firms nominal risky discount rate is 21%. What is the value of this firm?

Group of answer choices

$21,845.09

$11,310.67

$14,427.00

$16,263.09

$18,803.84