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:

FCF	Year 1 -$ 128,000.	Year 2 $10,000 .	Year 3 $92,000	Year 4 $226,000

Assume cash flows after year 4 will grow at 4 % per year, forever.

If the cost of capital for this division is 8 %, what is the continuation value in year 4 for cash flows after year 4?

What is the value today of this division?