Q1. RM Company would like to invest in a division that develops software for video games. The firm is projecting the working capital needed for this operation to evaluate this decision. The CFO has developed the following estimates (in millions of dollars): Year 1 Year 2 Cash 10 15 Accounts 31 27 receivable Inventory 10 9 8 Accounts payable 18 26 22.2 Year 3 19 Year 4 Year 5 735 17 15 25 24 22 12 13 15 30 Please calculate 1) net working capital each year, 2) increases in networking capital each year, and 3) cash flows associated with increases in working capital each year (Assume that RM company currently does not have any working capital invested in this division). Q2. AT, Inc., reported a net income of $950 million for the most recent year. The firm had a $150 million CCA tax shield, $300 million in capital expenditures, and no interest expenses. Working capital increased by $100 million. Calculate the company's free cash flow for the year.