The expected Cash Flow From Assets of McAlley's Ice Cream Shop for the next two years are $190,000 and $148,000 respectively. After these two years, the growth rate of these cash flows will be a constant 3.7% per year.

Assuming a discount rate of 8.7%, what is the present value of the terminal value of this firm?

Multiple Choice

a. $3,069,520

b. $2,111,365.01

c. $2,364,028.85

d. $1,764,092.90

e. $2,597,833.90