Calculate the enterprise value for the business shown below.

Use the Gordon's growth formula to calculate terminal value. Assume cash flows fall mid year.

Long term growth rate $1\mathrm{.}6\%$

WACC $9\mathrm{.}0\%$

Year Current $1\mathrm{.}02\mathrm{.}03\mathrm{.}0$

Free cash flow $55\mathrm{.}060\mathrm{.}065\mathrm{.}0$

Select one:

$877\mathrm{.}3$

$865\mathrm{.}9$

$1,050\mathrm{.}2$

$840\mathrm{.}3$