Inflation and Company Value

Sparkling Water, Inc., expects to sell 5 million bottles of drinking water each year in perpetuity. This year, each bottle will sell for $1.10 in real terms and will cost $0.89 in real terms. Sales income and costs occur at year-end. Revenues will rise at a real rate of 2 percent annually, while real costs will rise at a real rate of 1.5 percent annually. The real discount rate is 6 percent. The corporate tax rate is 34 percent. What is Sparkling worth today?