Given the forecast below, estimate the fair market value of Kenmore Air at the end of 2017. Assume that after 2021, earnings before interest and tax will remain constant at $220 million, depreciation will equal capital expenditures in each year, and working capital will not change. Kenmore Airs weighted-average cost of capital is 11 percent and its tax rate is 40 percent.

Forecast for Kenmore Air, Inc.
Year	2018	2019	2020	2021
Free cash flow ($ millions)	40	85	97	112