A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13% and the FCF's are expected to continue growing at a 5% rate after year 3. Assuming that the ROIC is expected to remain constant in year 3 and beyond, what is the year 0 value of operations in millions?
Year one frees cash flow-$15, two $10 and third year $40
a. $315
b. $331
c. $348
d. $367