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Kale Inc. forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital

Kale Inc. forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 5.0% after Year 2, then what is the firms total corporate value (in millions)? Do not round intermediate calculations.

Year 1 2
Free Cash flow -$40 $175
a. $2,592 million
b. $2,361 million
c. $2,450 million
d. $2,719 million
e. $3,063 million

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