A firm reported after$-$tax operating income of $$25$ million in the most recent year and expects operating income to grow $10\%$ a year for the next five years, but the firm will experience a decline in operating income of $3\%$ a year, thereafter in perpetuity $($negative growth rate$).$ If the firm's cost

Section $1($MCQ$)$

of capital is $10\%,$ estimate the value $($in millions$)$ at the end of the fifth year $($rounded to the nearest integer$).$

A$.$ $ $585$ B$.$ $ $557$ C$.$ $ $319$ D$.$ $ $300$