Fast Mawar Bhd is a company that manufactures box mowers. It had net income of $ 15 million on revenues of $ 50 million last year, after depreciation charges of $ 10 million. Capital expenditures last year amounted to $ 16 million and total non - cash working capital was $ 10 million. The firm had a cash balance of $ 15 million and paid 50% of its earnings as dividends last year. There is no debt outstanding.
Assuming that revenues, capital expenditures and depreciation grow 10% a year and that net income grows 12% a year for the next four years, and that the non - cash working capital as a percent of revenues does not change over this period, estimate the cash balance at the end of year 4, if the company maintains its current payout ratio and borrows no money