You have been given the following information for Frontier software for year ending 2021

 

Revenues	$ 2000	Depreciation & Amortization	$ 400
Operating income	$1000	R & D expenses	$400
Taxable income	$800	Other operating expenses	$200
Net Income	550	Interest expenses	$200
		Taxes paid	$250

 

Frontier's track record shows that R&D takes, on average, four years to realize the benefits. You get access to the following R&D Expenses $300 (2020), $200 (2019), $160 (2018) and 100 (2017). Working capital (including cash) decreased by $35 million in 2014 but the cash balance increased by $45 million. Frontier invested $270 million in property, plant and equipment in 2014. No short-term debt

 

a)  Estimate Frontier's free cash flows to the firm on January 1, 2022