You have been asked to place a value on the fund capital of BestCare, a not-for-profit chain of nursing homes. Your financial analyst has provided you with the following estimates for BestCare:

Net revenue growth rate 3%

Cash expenses growth rate 3%

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

The cost of equity of similar for-profit nursing home chains is 12 percent, while BestCare's cost of debt is 8 percent. Its current capital structure is 40 percent debt and 60 percent equity. The best estimate for BestCare's long-term growth rate is 3 percent. Furthermore, the chain currently has $40 million in debt outstanding. What is the free operating cash flow (FOCF) in year 1? what is the free operating cash flow in year 3? what is the terminal cash flow at date 5? what is the fund capital value of BestCare?