1) Astro Clocks Inc is considering starting a new division. It has prepared the following four- year forecast of free cash flows for this division. Assuming free cash flows after year 4 will grow at 3% per year, forever. If the cost of capital for the division is 14%, then the continuation value in year 4 for cash flows after year 4 is closet to: Year 1 2 3 4 Free cash flow -$185,000 -$12,000 $99,000 $240,000 a) $1,626,247 b ) $1,765,714 c) $2,181,818 d) $2,247,273