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Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted

Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 16% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the firms total corporate value, in millions? Do not round intermediate calculations.

Year 1 2 3
Free cash flow -$20.00 $48.00 $50.88
a. $398.93 million
b. $508.80 million
c. $396.55 million
d. $648.63 million
e. $618.98 million

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