Please answer the question and if possible post the calculation as well.

Juicers Inc. is thinking of acquiring Fast Fruit Company. Fast Fruit currently has no debt outstanding. Juicers expects Fast Fruit's FCF to be $9 million in the first year, and $15 million in the second year. After the second year, the free cash flows will grow at a constant rate of 4%. Fast Fruit's cost of equity is 10%. What is the value of Fast Fruit? $235.5 million $196.3 million $215.9 million None of the answers provided. Previous Next