Question 10 Castle View Games would like to invest in a division to develop software for a​ soon-to-be-released video game console. To evaluate this​ decision, the firm first attempts to project the...





Question 10


Castle View Games would like to invest in a division to develop software for a​ soon-to-be-released video game console. To evaluate this​ decision, the firm first attempts to project the working capital needs for this operation. Its chief financial officer has developed the following estimates​ (in millions of​ dollars):
1.


Assuming that Castle View currently does not have any working capital invested in this​ division, calculate the cash flows associated with changes in working capital for the first five years of this investment. ​(Note: Enter decreases as negative​ numbers.)





The change in working capital for year 1 is
​$nothing

million.  ​(Round to the nearest​ integer.)

The change in working capital for year 2 is
​$____________________

million.  ​(Round to the nearest​ integer.)

The change in working capital for year 3 is
​$__________________________

million.  ​(Round to the nearest​ integer.)

The change in working capital for year 4 is
​$nothing

million.  ​(Round to the nearest​ integer.)

The change in working capital for year 5 is
​$_________________________

million.  ​(Round to the nearest​ integer.)




1: Data Table













































































Year 1


Year 2


Year 3


Year 4


Year 5


1


Cash


6




12




15




15




15




2


Accounts Receivable


21




22




24




24




24




3


Inventory


5




7




10




12




13




4


Accounts Payable


18




22




24




25




30






Jun 06, 2022
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