5. Satellite Telecommunications Inc. is a firm in significant financial trouble. The firm reported an EBITDA of - $ 100 million last year on revenues of $ 1000 million. You expect revenues to grow 30% a year for the next 3 years and the EBITDA as a percent of revenues to be 5% in year 1, 5% in year 2 and 25% after that. The firm has substantially over invested in plant and equipment in the last few years and will reduce its capital expenditures to $ 50 million a year for the next 3 years, while depreciation will remain at $ 100 million a year for the next 3 years. Non-cash working capital is expected to be 5% of revenues. After year 3, the firm will grow 4% a year forever, and maintain a return on capital of 10%. The cost of capital will be 12% for the next 3 years and 10% thereafter. The firm has a net operating loss carryforward of $ 150 million currently and the marginal tax rate is 40%.

a. Estimate the free cashflows to the firm for the next 3 years.

b. Estimate the terminal value at the end of year 3.

c. Estimate the value of the firm today.

please answer the question in step by step detailed calculations for all the parts and include the formulas used and what each symbol means in them. please only do it if you give it your time and thoughts. ( could include tables)