Answer:
$153,534.87
Explanation:
Terminal value = Cash flows*(1+g)/(WACC-g)
Terminal value = $28,800*(1+2.1%)/(13.6%-2.1%)
Terminal value = $28,800*1.021/0.115
Terminal value = $255,693.91
Present value of TV = Value of firm
Present value of TV = (TV / (1+WACC)^n)
Present value of TV = $255,693.91/(1+13.6%)^4
Present value of TV = $255,693.91/1.136^4
Present value of TV = $255,693.91/1.66538
Present value of TV = 153534.8749234409
Present value of TV = $153,534.87
So, the value of the firm at Time 4 is $153,534.87