VALUATION. For this and the next 2: Matrix Systems is a fast growing supplier of IT products. Analysts project the following free cash flows (FCF), in millions, during the next 3 years, after which FCF is expected to grow at a constant rate of 5%. The company's weighted average cost of capital (WACC) is 13%.

FCF YEAR 1: -20 YEAR 2: 30 YEAR 3: 40

What is your estimate of the firm's value of equity? 1) $330.54 2) $347.37 3) $447.36 4) None of above