A major pension fund in interested in purchasing Z Industries stock. The treasurer of the pension fund has done a great deal of research on the company and realizes that its valuation must be based on the total company model. The pension funds treasurer has estimated Z Industries free cash flow for the next 3 years as follows: $1 million, $3 million, and $10 million, respectively. After the third year, free cash flow is projected to grow at a constant 2 percent. The companys WACC is 10 percent; it has $15 million of total debt and preferred stock, and 10 million shares of common stock.

What is the total value of the firm?