Island Hotels, Inc. (IHI) forecasts that its free cash flow in the coming year, i.e., at...

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Island Hotels, Inc. (IHI) forecasts that its free cash flow inthe coming year, i.e., at t = 1, will be -$7 million (negative),but then its FCF will turn positive. At t = 2 IHI’s FCF will be $35million, and at t = 3 IHI’s FCF will be $58 million. After Year 3,FCF is expected to grow at a constant rate of 5% forever. If IHI’sweighted average cost of capital is 16%, what is the firm's valueof operations, in millions? Enter your answer rounded to twodecimal places. Do not enter $ or comma in the answer box. Forexample, if your answer is $12,300.456 then enter as 12300.46 inthe answer box.

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Island Hotels, Inc. (IHI) forecasts that its free cash flow inthe coming year, i.e., at t = 1, will be -$7 million (negative),but then its FCF will turn positive. At t = 2 IHI’s FCF will be $35million, and at t = 3 IHI’s FCF will be $58 million. After Year 3,FCF is expected to grow at a constant rate of 5% forever. If IHI’sweighted average cost of capital is 16%, what is the firm's valueof operations, in millions? Enter your answer rounded to twodecimal places. Do not enter $ or comma in the answer box. Forexample, if your answer is $12,300.456 then enter as 12300.46 inthe answer box.