GM has just designed a new Saturn . It forecasts sales of 200,000 cars per year at an average price of $ 18,000 . Costs are expected to be $ 17,000 / car . The model will sell for 4 years and GM expects an inventory of 40,000 cars . GM has a cash budget of $ 20 million . Suppose GM pays no dividends , gives no credit to customers , and retains all their earnings in cash , what is the net working capital by the end of Year 2 ? ( choose the most accurate answer ) ( hint : you can refer back to the in class example ) $ 700 million $ 900 million $ 1000 million O $ 1200 million