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Heath and Logan Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 14%, and the FCFs are

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Heath and Logan Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 14%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the ROIC is expected to remain constant in Year 3 and beyond what is the Year 0 value of operations, in millions? 2 3 Year 1 Free cash flow: -515 $10 $40 3337 0.5321 5367 8.5315

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