A prospective buyer has hired you to value a bike shop. you estimate that in the next 4 years, bike shop will generate free cash flows of $10,000, $14,000, $18,000 and $21,000. After that, you expect that cash flows to grow by 5% indefinitely. The discount rate is 12%. Regardless of what answer you find, assume that the terminal value for the bike shop is $250,000. What is the price that the buyer should pay for the bike shop. (round to the nearest thousands of dollars).
A.$210,000
B.$250,000
C.$313,000
D.$205,000
E.$305,000