Your colleague Sam disagree with you. She feels the FCFs should be modeled with a two-stage growth rate.

 Your colleague Sam disagree with you. She feels the FCFs should be modeled with a two-stage growth rate. During the first five years, Sam estimates the growth rate of FCF should be 8% per year starting at $4 million in year 1. Starting year 6, Canton's FCF will grow at 2% per year for the indefinite future. Given 12% cost of capital, what is the value of the firm's future cash flows under this set of assumptions?