4.1. A Discounted Cash Flow Valuation (Easy) At the end of 2009, you forecast the following cash flows (in millions) for a firm with net debt of $759 million: 2010 2011 2012 Cash flow from operations $1,450 $1,576 $1,718 Cash investment 1,020 1,124 1,200 You forecast that free cash flow will grow at a rate of 4% per year after 2012. Use a required return of 10% in answering the following questions.

a. Calculate the firm's enterprise value at the end of 2009.

b. Calculate the value of the equity at the end of 2009.