Misra Inc. forecasts a free cash flow of $85 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 14.0%, then what is the horizon, or continuing, value in millions at t = 3?

a. $2,833 million

b. $1,630 million

c. $2,686 million

d. $2,989 million

e. $3,074 million