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

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):  ​(To copy the table below and use in​ Excel, click on icon in the upper right corner of​ table.)

Year 1

Year 2

Year 3

Year 4

Year 5

1

Cash

6

11

16

15

14

2

Accounts receivable

20

22

26

21

25

3

Inventory

5

8

10

12

15

4

Accounts payable

16

21

24

25

34

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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jeff jeffy answered 2 years ago
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