R$$o Hondo Inc. is a newly established firm in October $2020$ with zero sales in $2020.$ The company expects to have sales of $$1$ million in $2021$ and $$4$ million in $2022$ later. The company further forecasts that working capital needs will be equal to $20\%$ of next$-$year sales in $2020$ and $5\%$ of next$-$year sales in $2021.$ Capital expenditures are $$0\mathrm{.}3$M in $2020,$ depreciated in a straight line starting in $2021.$ Capital expenditures will be equal to zero in $2021$ and double depreciation in $2022.$

Which of the following are true? $($A full answer requires two choices$)$

R$$o Hondo Inc. is a newly established firm in October $2020$ with zero sales in $2020.$ The company expects to have sales of $$1$ million in $2021$ and $$4$ million in $2022$ later. The company further forecasts that working capital needs will be equal to $20\%$ of next$-$year sales in $2020$ and $5\%$ of next$-$year sales in $2021.$ Capital expenditures are $$0\mathrm{.}3$M in $2020,$ depreciated in a straight line starting in $2021.$ Capital expenditures will be equal to zero in $2021$ and double depreciation in $2022.$

Which of the following are true? $($A full answer requires two choices$)$

Budgeted changes in NWC push FCF up in $2021$

Property, plant, and equipment will be lower in $2020$ than $2022$

Property, plant, and equipment will be higher in $2020$ than $2022$

Budgeted changes in NWC push FCF down in $2021$

Budgeted changes in NWC do not push FCF up or down on net in $2021.$

Property, plant, and equipment will be equal in $2020$ and $2022$R$$o Hondo Inc. is a newly established firm in October $2020$ with zero sales in $2020.$ The company expects to have sales of $$1$ million in $2021$ and $$4$ million in $2022$ later. The

company further forecasts that working capital needs will be equal to $20\%$ of next$-$year sales in $2020$ and $5\%$ of next$-$year sales in $2021.$ Capital expenditures are $$0\mathrm{.}3$ M in $2020,$

depreciated in a straight line starting in $2021.$ Capital expenditures will be equal to zero in $2021$ and double depreciation in $2022.$

Which of the following are true? $($A full answer requires two choices$)$

Budgeted changes in NWC push FCF up in $2021$

Property, plant, and equipment will be lower in $2020$ than $2022$

Property, plant, and equipment will be higher in $2020$ than $2022$

Budgeted changes in NWC push FCF down in $2021$

Budgeted changes in NWC do not push FCF up or down on net in $2021.$

Property, plant, and equipment will be equal in $2020$ and $2022$