Gonzales Corporation generated free cash flow of $ 85 million this year. For the next two years, the company's free cash flow is expected to grow at a rate of 8 %. After that time, the company's free cash flow is expected to level off to the industry long-term growth rate of 4% per year. If the weighted average cost of capital is 10 % and Gonzales Corporation has cash of $100 million, debt of $300 million, and 100 million shares outstanding, what is Gonzales Corporation's expected free cash flow in year 2?
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