BestCare has a net revenue growth rate is 3%, a Cash expenses growth rate 3%, and an Estimated retention growth rate 10%

Its projected profit and loss statements and retention requirements are shown below (in millions):

	Year 1	Year 2	Year 3	Year 4	Year 5
Net revenues	$100.00	$103.00	$106.09	$109.27	$112.55
Cash expenses	$90.00	$92.70	$95.48	$98.35	$101.30
Depreciation	$4.00	$4.00	$4.00	$4.00	$4.00
Interest	$3.20	$3.20	$3.20	$3.20	$3.20
Net profit	$2.80	$3.10	$3.41	$3.73	$4.06
Estimated retentions	$6.00	$6.60	$7.26	$7.99	$8.78

A. The cost of equity of similar nursing home chains is 12%, while BestCare's cost of debt is 8%. Its current capital structure is 40% debt and 60% equity. The best estimate for BestCare's long-term growth rate is 3%. The chain has $40 mil. in debt outstanding. What is the free operating cash flow for years 1, 3, & 5?

B. What is the terminal cash flow at date 5?