Problem 8 Intro It is December 2021. You work as a financial analyst for Merck & Co. and are tasked with the due diligence on the proposed acquisition of a biotech startup. You estimated the following cash flows for the startup: Year Expected cash flow from assets ($ million) (end of year) 2022 87.5 2023 131.25 2024 170.63 2025 204.75 2026 225.23 After 2026, cash flows are expected to grow by 4% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 15%. The biotech firm has 5 million shares and bonds worth $120 million outstanding. Part 1 Attempt 1/5 for 2 pts. What is the terminal value, i.e., the present value of all free cash flows from 2027 to infinity expressed in 2026-dollars (in $ million)? 0+ decimals Submit