$(7-12)$ Value of Operations

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $$80,000$ and $$100,000$ for the next $2$ years, respectively; after the second year, FCF is expected to grow at a constant rate of $8\%.$ The company's weighted average cost of capital is $12\%.$

a$.$ What is the terminal, or horizon, value of operations? $($Hint: Find the value of all free cash flows beyond Year $2$ discounted back to Year $2.)$

b$.$ Calculate Kendra's value of operations.