VALUATION. FOR THIS AND THE NEXT QUESTION. Mack Industries' free cash flow last year was $1 million (i.e., FCFO $1 million). You estir company's free cash flow to grow 20% this year and 15% next year. After two years, FCF is expected to grow at a constant rate of 7%. The c capital is 10%. Calculate the horizon value at the end of year 2. $12.23 million $18.67 million $49.22 million $42.91 million None of the above