Question: Diversified Industries, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million (negative), but its

Diversified Industries, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million (negative), but its FCF at t = 2 will be $33 million.After Year 2, FCF is expected to grow at a constant rate of 4% forever.If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions?

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