Forecast KMS’s free cash flows (reproduce Table 18.13), assuming KMS’s market share will increase by 0.25% per year; investment, financing, and depreciation will be adjusted accordingly; and working capital will be as you projected in Problem 15.

Data from table 18.13

Data from problem 15

Assuming that KMS’s market share will increase by 0.25% per year (implying that the investment, financing, and depreciation will be adjusted as described in Problems 13 and 14), and that the working capital assumptions used in the chapter still hold, calculate KMS’s working capital requirements through 2024 (that  is, reproduce Table 18.9 under the new assumptions).

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1 Year 2 Free Cash Flow ($000s) 3 Net Income 4 Plus: After-Tax Interest Expense 5 Unlevered Net Income 6 Plus: Depreciation 7 Less: Increases in NWC 8 Less: Capital Expenditures 9 Free Cash Flow of Firm 2020 2021 2022 2023 8,769 230 10,162 12,854 15,852 1,250 1,250 1,250 8,999 11,412 14,104 17,102 7,444 7,499 7,549 7,594 -5,257 -5,802 -6,453 -25,000 -8,000 -8,000 13,815 5,108 7,200 -7,166 -8,000 9,530 2024 19, 184 1,250 20,434 7,635 -7,948 -8,000 12, 121