Finisterra, S$.$A$.,$ located in the state of Baja$$ California, Mexico, manufactures frozen Mexican$$ food, which enjoys a large following in the U$.$S$.$ states of California and Arizona to the north. In order to be closer to its U$.$S$.$ market, Finisterra is considering moving some of its manufacturing operations to southern California. Operations in California would begin in year $1$ and have the following$$ assumptions:

The operations in California will pay $76\%$ of its accounting profit to Finisterra as an annual cash dividend. Mexican taxes are calculated on grossed up dividends from foreign$$ countries, with a credit for$$ host$-$country taxes already paid. What is the maximum U$.$S$.$ dollar price Finisterra should offer in year $1$ for the$$ investment?

Assumptions Value

Sales price per unit, year $1($$$)6\mathrm{.}00$

Sales price increase, per year $(\%)2\mathrm{.}00$

Initial sales volume, year $1,$ units $1,400,000$

Sales volume increase, per year $(\%)9\mathrm{.}00$

Production costs per unit, year $1($$$)3\mathrm{.}00$

Production cost per unit increase, per year $(\%)4\mathrm{.}00$

General and administrative expenses per year $($$$)110,000$

Depreciation expenses per year $($$$)78,000$

Spot exchange rate $($Peso$=$US$$1\mathrm{.}00)$ Year $0$: $6\mathrm{.}00$ Year $1$: $7\mathrm{.}00$ Year $2$: $8\mathrm{.}00$ Year $3$: $9\mathrm{.}00$

Finisterra's WACC $($pesos$)(\%)15\mathrm{.}70$

Terminal value discount rate $(\%)19\mathrm{.}70$

Please include answer to Terminal value $($$$)($discounted at $19\mathrm{.}7\%)($dividend in year $4/\mathrm{.}197)$