Kedia Inc

Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = -$5 million, but it expects positive numbers thereafter, with FCF2= $5 million. After Year 2, FCF is expected to grow at a constant rate of 5.5% forever. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 14.0%, what is the firm’s total corporate value, in millions? Do not round intermediate calculations.

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