The top management team of a firm purchased the company with their own personal funds and $100 million borrowing. The interest on the loan was 8% and the loan is to be paid off annually by $20 million so that by the end of year 5 the loan will be fully paid off. The unlevered cost of equity for the firm is estimated at 12% and the tax rate is 35%. The free cash flows are estimated for the next five years as follows: $50 million in year 1, $55 million in year 2, $58 million in year 3, $60 million in year 4, and $65 million in year 5. The cash flow is expected to grow at 2% per year after the fifth year.

Estimate the value of the firm as of year 0 using the APV valuation method.