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The projected Net Income (the firm has no debt) and free cash flows next year for Company Thirtheen are given in the following table: Company
The projected Net Income (the firm has no debt) and free cash flows next year for Company Thirtheen are given in the following table: Company Thirteen expects capital expenditures and depreciation to continue to offset each other, and for both net income and increase in working capital to grow at 5% per year. Company Thirteen's cost of capital is 11%. If Company Thirteen were able reduce its annual increase in working capital to 3.3% by managing its working capital more efficiently without adversely affecting any other part of the business, what would be the effect on Company Thirteen's value? Answer: The impact on the value of the firm is \$ (Round to two decimal places.)
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