Answered step by step
Verified Expert Solution
Question
1 Approved Answer
15. Assuming that KMS's market share will increase by 0.29% per year, you determine that the plant will require an expansion in 2015. The expansion
15. Assuming that KMS's market share will increase by 0.29% per year, you determine that the plant will require an expansion in 2015. The expansion will cost $20.6 million. Assume the following: the financing of the expansion will be delayed accordingly (end of 2015), KMS uses a ten-year bond, interest rates remain the same, and KMS's tax rate is 35%. Using this information and the data given here ', calculate KMS's additional annual working capital requirements through 2018. The additional annual working capital requirements for 2014 will be $ thousand. (Round to the nearest integer.) The additional annual working capital requirements for 2015 will be $ thousand. (Round to the nearest integer.) The additional annual working capital requirements for 2016 will be $ thousand. (Round to the nearest integer.) The additional annual working capital requirements for 2017 will be $ thousand. (Round to the nearest integer.) The additional annual working capital requirements for 2018 will be $ thousand. (Round to the nearest integer.) 1: Data Table Projected values (000) Accounts Receivable Inventory Cash Accounts Payable 2013 $14,296 14,910 11,973 11,959 2014 $15,619 16,446 13,184 13,187 2015 $17,183 18,055 14,462 14,480 2016 $18,865 19,828 15,878 15,897 2017 $20,663 21,750 17,311 17,259 2018 $23,583 23,779 19,020 19,113
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started