You are trying to estimate the long run growth rate for unlevered free cash flows (FCFs) of a firm called Growth Inc. Growth Inc. is an IT firm that will always operate exclusively in the IT industry. You know that real GDP growth is expected to be 3% each year in the future, and that the IT industrys FCFs will have a nominal growth rate of 5% for the next 5 years. After that, the industrys FCFs will have zero real growth going forward. You expect that inflation will be 2% per year in the future. Growth Inc.s FCFs have been growing at 10% for the last 5 years. You are estimating Growth Inc.s FCFs for the next 5 years and expect that over those 5 years the growth rate of FCFs will be on average 4%. You believe that after those 5 years, Growth Inc.s FCF will enter a constant growth period with a perpetual nominal growth rate of g. You are wondering which growth rate g you should use. Given the data provided, you think that the following statement is most accurate:

	a.	You should pick g less than or equal to 10%
	b.	You should pick g less than or equal to 5%
	c.	You should pick g less than or equal to 4%
	d.	You should pick g less than or equal to 3%
	e.	You should pick g less than or equal to 2%
	f.	You should pick g less than or equal to 1%.
	g.	You should pick g less than or equal to 0%