The information below will be for the next TWO questions. A major pension fund in interested in purchasing Z Industries stock. The treasurer of the pension fund has done a great deal of research on the company and realizes that its valuation must be based on the total company model. The pension funds treasurer has estimated Z Industries free cash flow for the next 3 years as follows: $1 million, $3 million, and $5 million, respectively. After the third year, free cash flow is projected to grow at a constant 2 percent. The companys WACC is 10 percent; it has $25 million of total debt and preferred stock, and 2 million shares of common stock. What is the total value of the firm?

Group of answer choices

$55,041,322

$24,756,439

$124,760,923

65,476,098