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 $1$ year $2$ year $3$ year $4$ free cash flow

$-$$$114,000$ $$12000$ $$98000$

$$154000.$ Assume cash flows after year $4$ will grow at $3\%$ 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?