Castle View Games would like to invest in a division to develop software for video games....

 

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Castle View Games would like to invest in a division to develop software for video games. 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): (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Year 1 5 Year 2 Year 3 Year 4 Year 5 12 14 15 15 Accounts receivable 19 25 24 22 24 Inventory 6 7 12 14 14 Accounts payable 18 21. 23 27 33 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. Castle View Games would like to invest in a division to develop software for video games. 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): (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Year 1 5 Year 2 Year 3 Year 4 Year 5 12 14 15 15 Accounts receivable 19 25 24 22 24 Inventory 6 7 12 14 14 Accounts payable 18 21. 23 27 33 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.

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To calculate the cash flows associated with changes in working capital for the first five years of t... View the full answer