Assuming that KMS’s market share will increase by 0.25% per year (implying that the investment, financing, and depreciation will be adjusted as described in Problems 13 and 14), and that the working capital assumptions used in the chapter still hold, calculate KMS’s working capital requirements through 2024 (that is, reproduce Table 18.9 under the new assumptions).

Data from problem 13

Under the assumption that KMS’s market share will increase by 0.25% per year, you  determine that the plant will require an expansion in 2021. The expansion will cost  $20 million. Assuming that the financing of the expansion will be delayed accordingly,  calculate the projected interest payments and the amount of the projected interest tax  shields (assuming that KMS still uses a 10 year bond and interest rates remain the  same as in the chapter) through 2024.

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1 Year 2 Working Capital ($000s) 3 Assets 4 Accounts Receivable 5 Inventory 6 Cash 7 Total Current Assets 8 Liabilities 9 Accounts Payable 10 Total Current Liabilities 11 Net Working Capital 12 Net Working Capital (4-6) 13 Increase in Net Working Capital 2019 2020 2021 2022 2023 11,982 14,139 16,520 11,982 14,229 16,790 19,617 22,761 26,252 30,124 14,978 17,674 20,649 23,959 27,633 31,709 11,982 14,139 16,520 19,167 22,107 25,367 41,189 48,603 56,786 65,886 75,992 87,201 2024 19,167 22,107 25,367 22,107 25,367 14,139 16,520 19,167 29,207 34,464 40,266 46,719 53,885 61,833 5,257 5,802 6,453 7,166 7,948