You also project that Coke will be acquired at the end of this four-year period by a third party, at which point you anticipate obtaining a $25M capital gain on your investment. Coke is currently valued at $60M, which you should consider as its economic value.

Forecasted impact on your companys marginal end-of-year free cash flow ($ millions) is:

Y1 = $1.9, Y2 = $3.0, Y3 = $7.5, Y4 = $12.0

Based on current economic value, what maximum price would you be willing to pay for 15% of Coke?