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A company expects capital expenditures and depreciation to continue to offset each other and for both net income and increase in working capital to grow

A company expects capital expenditures and depreciation to continue to offset each other and for both net income and increase in working capital to grow at 4% per year. The firm cost of capital is 12%. If the firm were able to reduce its annual increase in working capital by 20% by managing its working capital more efficiently. What would be the effect on firm's value? The firm Free Cash Flow and Working Capital for the year is 19M and 1M respectively

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