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: $($Click on the

fi

in order to copy its contents into a spreadsheet.$)$

Assume cash flows after year $4$ will grow at $5\%$ per year, forever. If the cost of capital for this division is $10\%$ 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 $$4,347,000.($Round to the nearest dollar.$)$

What is the value today of this division?

The value today is $$.($Round to the nearest dollar.$)$