Big Red Trucking is considering the acquisition of MidWest Transportation. MidWest's asking price of $535 million appears to be non-negotiable. Big Red plans to value MidWest's cash flows using its own hurdle, which is 13%. MidWest's cash flows for the next three years are projected as follows: $60 million in year 1, $70 million in year 2, and $75 million in year 3. Thereafter, the cash flows are projected to grow at a rate of 3% per year in perpetuity. Consider this information about Big Red as you work through a net present value calculation of the MidWest acquisition in questions 1 through 3. Notice that MidWest's cash flows begin to grow at a constant rate of 3% in year 3. You can consider that piece of the calculation first. To calculate the year 2 terminal value, imagine yourself two years into the future. From the point of view of year 2, what is the value of the cash flows to be received in year 3 and all future years?