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%. Calculate the horizon value of the firm (i.e. HV3). Question 17 options: 1) $525 million 2) $500 million 3) $323.08 million 4) $397.37 million 5) None of the above Calculate the value of the firm today (i.e. the PV of both the FCFs and the horizon value). 1) $525 million 2) $500 million 3) $323.08 million 4) $397.37 million 5) None of the above

year 1: -250

year 2: 30

year 3: 40