ABC Company generated after-tax operating income of $ 8 million on revenues of $100 million in the most recent year. Its book value of capital in the most recent year was $ 20 million. If you expect that after-tax operating income will grow 10% a year for the next 3 years and that the firm will maintain its current return on capital, estimate the expected cash flows each year for the next 3 years.

Select one:

a.

	Year 1	Year 2	Year 3
FCF	4	4.4	5.84

b.

	Year 1	Year 2	Year 3
FCF	8.8	9.68	10.648

c.

	Year 1	Year 2	Year 3
FCF	4.4	5.84	5.324

d.

	Year 1	Year 2	Year 3
FCF	6.6	7.26	7.986

e.

	Year 1	Year 2	Year 3
FCF	6	6.6	7.26

f.

	Year 1	Year 2	Year 3
FCF	8	8.8	9.68