The firm you work for plans to acquire a factory which is expected to generate 3, 4, 5, 5, and 6 million dollars of cash in the first five years respectively. From the end of this five year period, the cash flows are expected to grow at the rate of 3%. Assuming that the equity cost of capital of 10%, debt cost of capital of 5%, and the D:V ratio (i.e., leverage) of 0.5 are expected to remain constant, what is the present value (PV) of this factory? The firm pays a marginal tax rate of 40%.

Group of answer choices

168.4

158.4

148.4