Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?   a. $167     b. $158     c. $193     d. $175     e. $18

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A: Step 1: Step 2: Step 3: Step 4:

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