In 2005, your investment company has offered to buy Ideko for$ 53.7million. The projected improvements in working capital

may or may not occur. If the projected improvements in working capital occur, the NPV of the investment opportunity will be approximately$ 20.24

million. If the projected improvements in working capital do not occur, the NPV of the investment opportunity will be approximately

$ 10.56million. Infer the value today of the projected improvements in working capital under the assumptions that Ideko's market share will increase by

0.40 %per year and that investment, financing, and depreciation will be adjusted accordingly. Ideko's income statement and balance sheet for 2005 is shown here

Similar to) 0 Data Table Data Table invest pportun GROVE at for 20 (Click on the Icon located on the fop-nght comer of the data table below in order to copy its contents into a spreadsheet) (Click on the con located on the fop-night comer of the data table below in order to copy its contents into a spreadsheet) the savi Estimated 2005 Balance Sheet Data for Ideko Corporation Balance Sheet($ 000) 70 600 Estimated 2005 Income Statement Data for Ideko Corporation Income Statement ($ 000) Sales Cost of Goods Sold Raw Materials Direct Labor Costs Gross Profit Sales and Marketing Administrative EBITDA Depreciation ERIT Interest Expense net) (16.100) (18.700) 35.800 (11 310) (12.500) 11 990 5.705) Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant and Equipment Goodw Total Assets 6.187 17.408 6,275 29,870 51.345 72.367 153.582 6.285 4.661 Liabilities and Stockholders' Equity Accounts Payable Debt Total Liabilities Income Tax 2 172 102.500 107 161 Print Done Print Done Similar to) 0 Data Table Data Table invest pportun GROVE at for 20 (Click on the Icon located on the fop-nght comer of the data table below in order to copy its contents into a spreadsheet) (Click on the con located on the fop-night comer of the data table below in order to copy its contents into a spreadsheet) the savi Estimated 2005 Balance Sheet Data for Ideko Corporation Balance Sheet($ 000) 70 600 Estimated 2005 Income Statement Data for Ideko Corporation Income Statement ($ 000) Sales Cost of Goods Sold Raw Materials Direct Labor Costs Gross Profit Sales and Marketing Administrative EBITDA Depreciation ERIT Interest Expense net) (16.100) (18.700) 35.800 (11 310) (12.500) 11 990 5.705) Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant and Equipment Goodw Total Assets 6.187 17.408 6,275 29,870 51.345 72.367 153.582 6.285 4.661 Liabilities and Stockholders' Equity Accounts Payable Debt Total Liabilities Income Tax 2 172 102.500 107 161 Print Done Print Done