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Rotten Apple Inc. has received a takeover offer. Rotten Apple's cash flows for the recently closed financial year

are $19 million. The CEO, Tim Chef, has estimated that the net cash flows for the next five years will be $20 million, $22 million, $25 million, $30 million, and $35 million. Mr. Chef believes a constant 5% growth rate should be assumed beginning in the sixth year. Mr. Chef estimates that Rotten Apple's cost of capital is 12%. From Mr. Chef's estimates, what is the Rotten Apple's value?

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