Monroe Electronics' Projected Net Income and Free Cash Flows Are

Multiple Choice

Monroe Electronics' projected net income and free cash flows are given above in thousands of dollars.Monroe expects their net income and increases in net working capital to increase by 4% per year.and has a cost of capital of 8%.Monroe wishes to achieve a 5% increase in firm value.If the rest of the business remains unchanged,what reduction in working capital increases would Monroe require in order to achieve this goal?

A) $2,000
B) $4,200
C) $5,800
D) $10,000
E) $8,000