Franklin Industries has a current net working capital of $2.5 million. It expects that this will grow at a rate of 3.5% annually forever. If it could slow that growth to 3% per year, how would that affect thevalue of the firm, given that it has a cost of capital of 11%?
◦ an increase of $0.78 million
◦ an increase of $12,500
◦ an increase of $2.08 million
◦ a decrease of $2.22 million