Madura Inc. wants to increase its free cash flow by $180 million during the coming year, which should result in a higher EVA and stock price. The CFO has made these projections for the upcoming year:
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EBIT is projected to equal $850 million.
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Gross capital expenditures are expected to total to $360 million versus depreciation of $120 million, so its net capital expenditures should total $240 million.
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The tax rate is 40%.
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There will be no changes in cash or marketable securities, nor will there be any changes in notes payable or accruals.
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What increase in net working capital (in millions of dollars) would enable the firm to meet its target increase in FCF?