#8. (10 pts)_Show your work.
Adjustment Free Cash Flow from the Net Working Capital Changes
Following table is the Net Working Capital (NWC) requirements of HomeNet. Calculate NWC in each
year.
NWC
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Forecasts
Receivables
3,000
3,000
3,000
3,000
Payables
(2,000)
(2,000)
(2,000)
(2,000)
NWC
Estimate Free Cash flow adjustment from NWC changes.
FCF
Year 1
Year 2
Year 3
Year 4