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25- The projected Net Income and Free Cash Flows (F CF) next year for CMRC Enterprises are as follows: Net Income : $25,000,000 Add: Depreciation:

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25- The projected Net Income and Free Cash Flows (F CF) next year for CMRC Enterprises are as follows: Net Income : $25,000,000 Add: Depreciation: $4,000,000 Less: Capital Expenditures ($4,000,000) Less: Increases In Working Capital: ($2,000,000) Free Cash Flows (FCF) $23,000,000 The company expects capital expenditures and depreciation to continue to offset each other, and both Net Income and Increases in Working Capital to grow at 5% annually. The company's cost of capital is 10%. If CMRC were able to reduce its annual increase in working capital by 20% by managing its working capital more efficiently, holding everything else constant, what would be the rm's value ar this reduction in the annual increase in working capital

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