The Free Cash Flows (In Millions) Shown Below Are Forecast $\begin{array}{lccc}\text { Year: } & 1 & 2 \\\hline \text { Free cash flaw: } & -\$ 50& \$ 100 \end{array}$

Multiple Choice

The free cash flows (in millions) shown below are forecast by Parker & Sons. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millionsσ Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments) .
$\begin{array}{lccc}\text { Year: } & 1 & 2 \\\hline \text { Free cash flaw: } & -\$ 50& \$ 100 \end{array}$

A) $1,456
B) $1,529
C) $1,606
D) $1,686
E) $1,770