Answer:
Option C, $115 million is the correct answer.
Step-by-step explanation:
Given the present value (PV) of cash flow = $15 million
The present value of time horizon = $100 million
Now we have to calculate the present value (PV) of the business and this can be calculated by just adding the present value of free cash flows and the present value of horizon value.
The present value of the business = the present value (PV) of cash flow + The present value of the time horizon.
= 15 million + 100 million
= 115 million.
Therefore, option C. $115 million is correct.