DX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2008 you initiate discussions with IDXs founder about the possibility of acquiring the business at the end of 2008. Given the following data:

Unit: $ million

Year	2019	2020	2021	2022
Sales	468	516	547	574
Cost of goods sold (67% Sales)
Selling, general, and administrative expenses (20% Sales)
Depreciation	7	7.5	9	9.5
Tax rate (40%)
Capital expenditure (investment in fixed assets)	7.7	10	9.9	10.4
Investment in net working capital	6.3	8.6	5.6	4.9

After 2022, free cash flow (FCF) is expected to grow at 5% per year, indefinitely.

Weighted-average cost of capital: use WACC = 9.76% and 1.5m share outstanding

Estimate the intrinsic value of IDX using the discounted free cash flow approach.