Assuming a $40\%$ tax rate, what is Threshold worth?

Assume that Threshold will not need any additional net

working capital $($NWC$)$ in Year $2001,$ but will need an

additional $$95,000$ NWC each year from $2002$ to $2005.($Note:

The $$Profit $($loss$)$ from racing events$$ line in Exhibit $3$

comes from Exhibit $2.$ Also, Exhibit $3$ has some issues with

terminology. The $$Net profit$$ line is not really net

profit. Moreover, it would be better to use $$revenue$$ in

place of $$income$.$ Also, there is a major error in the

choice of items to list under $$Expenses$.$ See if you can

spot the error and correct for it in your analysis. Your

analysis will require use of the growing

perpetuity$/$constant growth model in order to estimate a

terminal value for your cash flows. Show your work for

this question in an Excel attachment.$)$