Random Firm Inc. expects to make earnings before interest and taxes (EBIT) of $230,000, $270,000, and $295,000 in each o

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Random Firm Inc. expects to make earnings before interest and
taxes (EBIT) of $230,000, $270,000, and $295,000 in each of the
next three years. Depreciation is estimated to be $55,000, $70,000,
and $65,000 in each of the next three years. Capital expenditures
are estimated to be $70,000, $90,000, and $80,000 in each of the
next three years. Incremental increases in working capital
requirements are estimated to be $50,000, $35,000, and $10,000 in
each of the next three years. Free cash flows beyond year three are
estimated to grow at an annual rate of 3.5%. The firm’s WACC is
9.2%, their tax rate is 21%, and the market value of their debt is
$600,000. Using the DCF approach, what is the value of Random
Firm’s equity?