1018/2018 Free Cash Flow Table Year 2 4 5 HomeNet Units Sales (000s) Sales Price (S/unit) Cost of Goods Sold (S/unit) Operating Expenses ($000s) Hardware & Software Develop Marketing & Technical Support Capital Expenditures Lab Equipment Depreciation Marginal Corporate Tax Rate 215- 50 260 231.40 205.95 183.30 120 94.8074.8959.16 105 160 11% 21% (15,000) (2,800) (2,800 (2,800) (2,800) (7,500) 33% 40% 29% 40% 35% WYo 40% Year 0 2 5 Incremental Earnings Forecast ($000) 1 Sales 2 Cost of Goods Sold 3 Gross Profits 4 Selling, General, and Administrative 5 Research and Development 6 Depreciation 7 EBIT 8 Income Tax at 40% 9 Unlevered Net Income 13,000 24,297 32,952 39,410 - (6,000) (9,954) (11,982) (12,719)- 7,000 14,34320,970 26,691- (2,800) (2,800) 2,800 (2,800) (15,000) - (2,500 (2,500) (2,500) - 15,000 700 9,043 15,670 23,891 - 6,000 (9,000) (680 (3,617) (6,268) (9,556)- 5,426 9,402 14,335 Free Cash Flow ($000) 10 Plus: Depreciation 11 Less: ptxpenditures 12 Less: Increases in NVWC 2,500 2,500 2,500- (7,500) (1,050) 1,102 (994) (858) (16,500 2,470 6,824 10,908 13,477 4,004 13 Free Cash Flow https:/www.mathxl.com/Student/PlayerHomework.aspx?homeworkld 4936656688questionld-1&flushed-false&cld-51190708centerwin-yes