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Your firm currently has net working capital of $70,000 that it expects to grow at a rate of 5% per year forever. You are considering
Your firm currently has net working capital of $70,000 that it expects to grow at a rate of 5% per year forever. You are considering some suggestions that could slow that growth to 3% per year. If your discount rate is 8%, how would these changes impact the value of your firm?
Answer: The impact on the value of the firm would be $________. (Round to the nearest dollar. No dollar sign, no comma.) (Use a negative number to indicate a negative impacti.e. that the firm value would decrease.)
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