6. You are trying to estimate the free cash flow to the firm on January 1, 2010, for a software company and have been provided with the following information for 2009 (all numbers in millions):

You are also given the following information:

a. The firm invested $180 million in property, plant and equipment in 2009.

b. The firms R&D generally takes an average of 4 years to pay off; its R&D expenses were $40 million in 2005, $80 million in 2006, $ 120 million in 2007 and $ 160 million in 2008.

c. Total working capital (including cash) increased by $ 10 million last year but the cash balance decreased by $ 20 million. The firm has no short-?term debt.

Estimate the free cash flow to the firm in 2009.

800 $100 $ 200 $ 200 $300 $ 50 $250 100 150 Revenues -Depreciation & Amortization -R & D expenses Other operating expenses Operating income Interest expenses Taxable income Taxes paid Net Income