Water, Inc., expects to sell 3.7 million bottles of drinking water each year in perpetuity. This...

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Water, Inc., expects to sell 3.7 million bottles of drinkingwater each year in perpetuity. This year each bottle will sell for$1.46 in real terms and will cost $.82 in real terms. Sales incomeand costs occur at year-end. Revenues will rise at a real rate of1.8 percent annually, while real costs will rise at a real rate of.8 percent annually. The real discount rate is 5 percent. Thecorporate tax rate is 23 percent.
What is the company worth today? (Do not round intermediatecalculations and enter your answer in dollars, not millions,rounded to the nearest whole number, e.g., 1,234,567.)

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Water, Inc., expects to sell 3.7 million bottles of drinkingwater each year in perpetuity. This year each bottle will sell for$1.46 in real terms and will cost $.82 in real terms. Sales incomeand costs occur at year-end. Revenues will rise at a real rate of1.8 percent annually, while real costs will rise at a real rate of.8 percent annually. The real discount rate is 5 percent. Thecorporate tax rate is 23 percent.What is the company worth today? (Do not round intermediatecalculations and enter your answer in dollars, not millions,rounded to the nearest whole number, e.g., 1,234,567.)