Now assume Plentix is considering a new project that costs $200 million and will generate free cash flows in its first three years of $10 million, $15 million, and $20 million, respectively.

After the third year, free cash flows are expected to grow at an annual rate of 7%.

Plentixs has determined that the appropriate cost of capital for this project is 16%.

What is the year 3 continuation value? What is the NPV of the project?