French Fries Corporation (FCF) generates a constant FCF of $1 million from years 1 through 4. Beginning on year 5, retention policy allows investments, increasing FCFs by 4% a year from year 5 onward. We also know that FCF has e constant debt to value ratio of 0.5 and; a corporate tax rate of 25%, and an equity cost of capital of 10% and a debt cost of capital of 8%. Estimate the continuation value for the constant growth perpetuity and the Enterprise Value of FCF.

a. $26 million; $22.42 million b. $17.33 million; $17.19 million c. $26 million; $21.69 million d. $17.33 million; $16.42 million