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NoLone, an all-equity manufacturing firm, has net in- come of $100 million currently and expects this number to grow at 10% a year for the

NoLone, an all-equity manufacturing firm, has net in- come of $100 million currently and expects this number to grow at 10% a year for the next three years. The firms working capital increased by $10 million this year and is expected to increase by the same dollar amount each of the next three years. The depreciation is $50 mil- lion and is expected to grow 8% a year for the next three years. Finally, the firm plans to invest $60 million in cap- ital expenditure for each of the next three years. The firm pays 60% of its earnings as dividends each year. NoLone has a cash balance currently of $50 million. As- suming that the cash does not earn any interest, how much would you expect to have as a cash balance at the end of the third year?

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