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Net Income $60,000 +Depreciation +$6,000 Capital Expenditures -$7,000 Increases in Working Capital $2.000 Free Cash Flow $57,000 Vega Music's projected net income and free cash

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Net Income $60,000 +Depreciation +$6,000 Capital Expenditures -$7,000 Increases in Working Capital $2.000 Free Cash Flow $57,000 Vega Music's projected net income and free cash flows are given above in thousands of dollars. Vega expects their free cash flows to increase by 5% per year. If Vega were able to reduce its annual increase in working capital by 15% without affecting the growth rate of their free cash flows, what would be the effect of this reduction on Vega's value given a cost of capital of 14%? Select one On an increase of $633333 Ob an increase of $6000 O an increase of $222 Od an increase of $3333

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