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...

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

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Question:

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