Question: Cerebral Semiconductor began operations last year with $8,906 in initial invested capital. The firm pays out all of its NOPAT as free cash flow and

Cerebral Semiconductor began operations last year with $8,906 in initial invested capital. The firm pays out all of its NOPAT as free cash flow and thus does not intend to ever grow. It's net investment is planned to be 0 forever. The firm has a 8% weighted average cost of capital and in its first year it earned $-93 in economic profit. Assume the firm is expected to last forever.

What is the value of Cerebral?

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