Question: please if you may add the calculator solution, that will really help 19. Bay Properties is considering starting a commercial real estate division. It has

please if you may add the calculator solution, that will really help

19. Bay Properties is considering starting a commercial real estate division. It has prepared the fol- lowing four-year forecast of free cash flows for this division: Year 1 Year 2 Year 3 Year 4 Free Cash Flow $182,000 $12,000 $90,000 $151,000 Assume cash flows after year 4 will grow at 5% per year, forever. If the cost of capital for this division is 11%, what is the continuation value in year 4 for cash flows after year 4? What is the value today of this division

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