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(5 points) Company Present, Inc. plans to invest in a new division. Free cash flows are estimated and reported as follows. ((Unit: Millions) Years 0
(5 points) Company Present, Inc. plans to invest in a new division. Free cash flows are estimated and reported as follows. ((Unit: Millions)
Years 0 1 2 3 4 5 Free Cash flows -6,000 2,000 2,000 2,000 2,000 3,000
The company has made a mistake without including change in working capital in above free cash flow estimation. The working capital related information is reported in following table.
Years 0 1 2 3 4 5 Accounts Receivable 0 200 600 0 400 0 Inventory 600 0 200 0 200 0 Accounts Payable 200 0 400 0 400 0
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