A Firm Forecasts a Project's Net Cash Flows ($Millions)in Years

Multiple Choice

A firm forecasts a project's net cash flows ($millions) in years 1 thru 4 as $120,$130,$135,and $137,respectively.If the project ends at the end of the fourth year,what is the horizon value of the project? Assume that the company had a historical growth rate of 3% and has a discount rate of 10%.

A) $0.00
B) $1.37
C) $1.96
D) $4.87