ReadMyMind Inc is a Silicon-valley startup that is expected to revolutionize social interaction in the 21^st century. The only equity investor in the startup is Sequoia, a well-known private equity firm. Free cash flow at ReadMyMind is forecasted to be zero from Year 1 to Year 9, but positive thereafter. The firm currently has a cash balance of $5mn. In year 10, free cash flow will be $10mn. In that year, Sequoia will use a ratio (exit multiple) based on free cash flow to calculate terminal value. If Sequoia requires a return of 9% on its equity and ReadMyMind has no debt, what is the equity value of the firm if Sequoia wants to exit its investment at a multiple of 15?

a. $63.36 mn

b. Cannot be calculated because we don't know the WACC

c. $67.59 mn

d. $72.69 mn

e. $150 mn