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Firm A is evaluating the potential acquisition of Firm B . Evaluation will be based on the capital structure and synergies expected after the acquisition.

Firm A is evaluating the potential acquisition of Firm B. Evaluation will be based on the capital structure and synergies expected after the acquisition. Firm B will have expected free cash flow of 5 million, 3 million and 6 million in Year 1, Year 2, and Year 3 respectively. After 3 years, firm B is growing at 6% growth rate.
Unlevered cost of equity is 10% and tax rate is 40%.
Using APV model, what is the unlevered firm value of Firm B?
$111
$131
$150
$120
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