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Madura Inc. wants to increase its free cash flow by ( $ 110 ) million during the coming year, which should result in a higher
Madura Inc. wants to increase its free cash flow by \\( \\$ 110 \\) million during the coming year, which should result in a higher EVA and stock price. The CFO has made these projections for the upcoming year: - EBIT is projected to equal \\( \\$ 880 \\) million. - Gross capital expenditures are expected to total to \\( \\$ 260 \\) million versus depreciation of \\( \\$ 120 \\) million, so its net capital expenditures should total \\$140 million. - The tax rate is \40. - There will be no changes in cash or marketable securities, nor will there be any changes in notes payable or accruals. What increase in net operating working capital (in millions of dollars) would enable the firm to meet its target increase in FCF? a. \\( \\$ 378 \\) million b. \\$262 million c. \\$298 million d. \\( \\$ 388 \\) million e. \\$278 million
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