How much expect to have cash balance at end of the year

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Question: NoLone Corporation, an all-equity manufacturing firm, has net income of $100 million currently and expects this number to grow at 10% a year for the next three years. The firm's working capital increased by $10 million this year and is expected to increase by the same dollar amount each of the next three years. The depreciation is $50 million and is expected to grow 8% a year for the next three years. Finally, the firm plans to invest $60 million in capital expenditure for each of the next three years. The firm pays 60% of its earnings as dividends each year. RYBR has a cash balance currently of $50. Assumingthat the cash does not earn any interest, how much would you expect to have as a cash balance at the end of the third year?

Reference no: EM131690278

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