Bay Properties is considering starting a commercial real estate division. It has prepared the following four-year forecast of free cash flows for this division:

Year 1 -157,000

Year 2 10,000

Year 3 $77,000

Year 4 $216,000

Assume cash flows after year 4 will grow at 4 % per year, forever. If the cost of capital for this division is 15%, what is the continuation value in year 4 for cash flows after year 4? What is the value today of this division?