Assume the following free cash flows for Aiello Inc. for 2016 and forecasted FCFF for 2017 onward (in millions): Current Forecast Horizon Terminal ($millions) 2017 2018 2019 2020 2021 Year Free cash flows to the firm (FCFF) $6,216 $6,527 $6,853 $7,196 $7,556 $7,707 The DCF value of the firm using the FCFF information above, a discount rate of 6%, and an expected terminal growth rate of 2%, is: Select one: A. $176,900 million B. $126,028 million C. $145,189 million D. $181,836 million E. None of the above

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500