Castle View Games would like to invest in a division to develop software for a soon-to-be-released...

Transcribed Image Text:

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): . Assuming that Castle View currently does not have any working capital invested in this division, calculate the cash flows associated with changes in net working capital for the first five years of this investment. (Note: Enter decreases as negative numbers.) The increase in net working capital for year 1 is $ Data table million. (Round to the nearest integer. Enter increases as negative numbers and decreases as positive numbers.) (Click on the following icon in order to copy its contents into a spreadsheet.) 1 Year 1 2 3 4 2 Cash 6 11 15 14 3 Accounts Receivable 20 22 25 21 4 Inventory 4 7 11 14 5 Accounts Payable 16 21 24 28 55035 15 26 13 31 Print Done - 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): . Assuming that Castle View currently does not have any working capital invested in this division, calculate the cash flows associated with changes in net working capital for the first five years of this investment. (Note: Enter decreases as negative numbers.) The increase in net working capital for year 1 is $ Data table million. (Round to the nearest integer. Enter increases as negative numbers and decreases as positive numbers.) (Click on the following icon in order to copy its contents into a spreadsheet.) 1 Year 1 2 3 4 2 Cash 6 11 15 14 3 Accounts Receivable 20 22 25 21 4 Inventory 4 7 11 14 5 Accounts Payable 16 21 24 28 55035 15 26 13 31 Print Done -