The Free Cash Flows (In Millions) Shown Below Are Forecast $\begin{array} { l c c c } \text { Year: } & 1 & 2 & 3 \\\hline\text { Free cash flow: } & - \$ 20 & 42 & \$ 45\end{array}$

Multiple Choice

The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions?
$\begin{array} { l c c c } \text { Year: } & 1 & 2 & 3 \\\hline\text { Free cash flow: } & - \$ 20 & 42 & \$ 45\end{array}$

A) $586
B) $617
C) $648
D) $680
E) $714