Misra Inc. forecasts a free cash flow of $75 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 8.5% and the cost of equity is 14.5%, then what is the horizon, or continuing, value in millions at t = 3?

a. $2,370 million

b. $2,713 million

c. $2,638 million

d. $1,439 million

e. $2,500 million