Question

Year                                          &nbs

Year                                                                                                                    1 2 3 4

Free Cash Flow                                         ​$12 million                               ​$18 million                             ​$22 million                               ​$26 million

Conundrum Mining is expected to generate the above free cash flows over the next four​ years, after which they are expected to grow at a rate of

44​%

per year. If the weighted average cost of capital is

12​%

and Conundrum has cash of​ $80 million, debt of​ $60 million, and 30 million shares​ outstanding, what is​ Conundrum's expected terminal enterprise​ value?

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