You have decided to use the discounted cash flow approach to value your business. Based on the riskiness of the new business, you believe a 28 percent discount rate is appropriate, along with a 9 percent growth rate in equity cash flow in Year 6 and beyond. Assume the projected cash flow statement below applies to your company:

	YEAR1	YEAR2	YEAR3	YEAR4	YEAR 5
Sales	$33.0	$76.0	$165.0	$190.0	$210.0
Cost of goods sold	11.2	24.7	62.9	73.7	82.3
Depreciation	3.0	8.0	8.0	8.0	8.0
Gross margin	$18.8	$43.3	$94.1	$108.3	$119.7
Gen./admin. expenses	12.0	18.0	23.0	27.0	30.0
Debt service	7.0	7.0	7.0	7.0	7.0
Pre-tax income	($0.2)	$18.3	$64.1	$74.3	$82.7
Taxes	0	8.0	29.0	33.0	37.0
Net income	($0.2)	$10.3	$35.1	$41.3	$45.7
Depreciation/amortization	3.0	8.0	8.0	8.0	8.0
Terminal value
Net cash flow	$2.8	$18.3	$43.1	$49.3	$53.7

QUESTION:

What is the terminal value of your company, based on the cash flow projections. Remember, the terminal value is the present value, as of the end of year 5, of the net cash flows that are expected to occur after year 5, using the Discounted Cash Flow (perpetual growth) method of valuation. (Show calculations)