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Hudson Bay Properties is considering starting a commercial real estate division. It has prepared the...

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Hudson Bay Properties is considering starting a commercial real estate division. It has prepared the following four-year forecast of free cash flows for this division: Year 1 Year 2 Year 3 Year 4 Free cash flow - $132,000 - $9,000 $90,000 $199,000 Assume cash flows after year 4 will grow at 2% per year, forever. If the cost of capital for this division is 18%, 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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