Madura Inc $\$ 960$ Million
Gross Capital Expenditures Are Expected to Total To $180

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 $\$ 960$ million.
Gross capital expenditures are expected to total to $\$ 360$ million versus depreciation of $\$ 120$ million, so capital expenditures should total $\$ 240$ million.
- The tax rate is $40 \%$ .
There will be no changes in cash or marketable securities, nor will there be any changes in notes payabl accruals.
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What increase in net operating working capital (in millions of dollars) would enable the firm to meet its target increase in FCF?

A) $176
B) $156
C) $117
D) $161
E) $137