Gupta Corporation Is Undergoing a Restructuring,and Its Free Cash Flows

Gupta Corporation is undergoing a restructuring,and its free cash flows are expected to vary considerably during the next few years.However,the FCF is expected to be $85.00 million in Year 5,and the FCF growth rate is expected to be a constant 6.5% beyond that point.The weighted average cost of capital is 12.0%.What is the horizon (or continuing) value (in millions) at t = 5?

A) $1,432
B) $1,662
C) $2,041
D) $1,646
E) $1,234