Next year, net income is expected to be $3,000. Capital Expenditures are expected to increase by $300. Depreciation is expected to be $285. Working capital is expected to increase by $40. Sales are $14,000.
1. What is cash flow from assets expected to be next year?
2. If the weighted average cost of capital is used as the discount rate and is 14%, and growth is expected to be steady beginning now through the foreseeable future at 4% (forever), then what is the value of this business opportunity?