16. The present value of the terminal (continuation) value cash flow that begins in 9 years is $10,000,000 assuming a cost of equity equal to 14%. The year 9 free cash flow (beginning of the growing perpetuity) is $3,137,860. What is the growth rate required for the continuation value term?

1. 1%

2. 2%

3. 3%

4. 4%

5. 5%