Kale Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 5.0% after Year 2, what is the Year 0 value of operations, in millions?
A) $1,456
B) $1,529
C) $1,606
D) $1,686
E) $1,770
Correct Answer:
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