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 - $112,000 $15,000 $78,000 $161,000 Assume cash flows after year 4 will grow at 3% per year, forever. If the cost of capital for this division is 16%, what is the continuation value in year 4 for cash flows after year 4? What is the value today of this division