Question

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 Icon located on the​ top-right corner of the data table below in order to copy its contents into a​ spreadsheet.)

	Year 1	Year 2	Year 3	Year 4	Year 5
Cash	4	10	16	15	14
Accounts receivable	21	25	26	25	25
Inventory	5	7	10	13	15
Accounts payable	18	19	23	26	30

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.)

The net working capital in year 1 is

​$nothing

million.  ​(Round to the nearest​ integer.)

Answer 1

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