11.

A company forecasts free cash flow in one year to be -$10 million and free cash flow in two years to be $20 million. After the second year, free cash flows grow at a constant rate of 4% per year forever. If the overall cost of capital is 14%, what is the current value of operations, to the nearest million?

Group of answer choices

$150 million

$200 million

$167 million

$228 million

$208 million