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 - Year 1 Year 2 Year 3 Year 4

Free cash flow - $ 156, 000 $ 11, 000 . $ 76, 000 $ 193, 000

Assume cash flows after year 4 will grow at 3 % per year, forever. If the cost of capital for this division is 18 % , what is the continuation value in year 4 for cash flows after year 4? What is the value today of this division? What is the continuation value in year 4 for cash flows after year 4? The continuation value is $ nothing. (Round to the nearest dollar.)