Your private equity firm has identified a turnaround opportunity. It is projected to generate FCFF to the firm of $12 million at the end of year 1, $42 million at the end of year 2, and $50 million at the end of year 3, after which FCFF is expected to grow at 4% per year forever after. What is the value of the firm if the appropriate discount rate is 11% per year?

Select one: a. $65 million b. $398 million c. $625 million d. $425 million