Question: Assuming that KMS's market share will increase by 0.28% per year, you determine that the plant will require an expansion in 2018. The expansion will

 Assuming that KMS's market share will increase by 0.28% per year,

Assuming that KMS's market share will increase by 0.28% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $20.5 million. Assume the following: the financing of the expansion will be delayed accordingly (end of 2018), KMS uses a ten-yea bond, interest rates remain the same, and KMS's tax rate is 35%. Using this information and the data given here calculate KMS's additional annual working capital requirements through 2021. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The additional annual working capital requirements for 2017 will be $ thousand. (Round to the nearest integer.) - Data table The additional annual working capital requirements for 2018 will be s thousand. (Round to the nearest integer.) The additional annual working capital requirements for 2019 will be $ OOOOO thousand. (Round to the nearest integer.) The additional annual working capital requirements for 2020 will be $ thousand. (Round to the nearest integer.) Projected values (000) Accounts Receivable Inventory Cash Accounts Payable 2016 $14,222 14,935 11,935 11,952 thousand. (Round to the nearest integer.) 2017 $15,682 16,451 13,112 13,182 2018 $17,197 18,094 14,482 14,496 2019 $18.824 19,801 15,800 2020 $20,615 21,744 17,352 17,361 2021 $23,123 23,787 19,089 19,259 The additional annual working capital requirements for 2021 will be s 15,820 | Print Done

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