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Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively, and after the second year it is expected to grow at a constant rate of 8 percent. The company's weighted average cost of capital is WACC = 12%.

a. What is the terminal, or horizon, value of operations? 

b. Calculate the value of Brooks' operations.

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