1.2) In the year that just ended, Arc Inc reported sales of $800 million, operating cots of $300 million, depreciation of $200 million, interest expense of $20 million, capital expenditures of $25 million, and changes in net working capital of $5 million. Its tax rate is 25% and WACC is 9%. Its free cash flows are expected to grow at 15% per year for three years and then grow at a constant rate of 3% after three years. What is the enterprise value of Arc Inc (in millions)?

a. $9,518.72

b. $8,931.14

c. 9,283.69

d.9,115.58

e.$9111.47