Grevillea Inc has no debt and expects to generate free cash flows of $18 million each year. Grevillea Inc believes that if it permanently increases its level of debt to $45 million, the risk of financial distress may cause it to receive less favourable terms from its suppliers. As a result, Grevillea Incs expected free cash flows with debt will be only $15 million per year. Suppose Grevillea Incs tax rate is 35%, the risk-free rate is 3%, the market risk premium is 7%, and the beta of Grevillea Incs free cash flows is 1.3 (with or without leverage). Grevillea Incs value after it has increased its level of debt is closest to

	A.	$152 million
	B.	$185 million
	C.	$140 million
	D.	$220 million