An equity analyst colleague at Goldman Sachs suggested that a 6% growth rate is too low for revenue, profit and cash flow beyond year five. Your colleague suggested to increase growth to 12% in the continuing period. If Net Operating Profit Less Adjusted Taxes (NOPLAT) equals $26.6 million in year six, Return on New Invested Capital (RONIC) equals 15% and the cost of capital equals 10%.
What is the continuing value as of year five? Do not state an amount, please support your answer.