1. Leak Inc. forecasts the free cash flows (in millions) shownbelow. If the weig

1. Leak Inc. forecasts the free cash flows (in millions) shownbelow. If the weighted average cost of capital is 11% and FCF isexpected to grow at a rate of 5% after Year 2 what is the Year 0value of operations in millions? Assume that the ROIC is expectedto remain constant in Year 2 and beyond (and do not make anyhalf-year adjustments).