After looking at the projections of the HomeNet project, you decide that they are not realistic. It is unlikely that sales will be constant over the four-year life of the project. Furthermore, other companies are likely to offer competing products, so the assumption that the sales price w l remain constant is also likely to be optimistic. Finally, as production ramps up, you anticlpate lower per unit prcduction costs resulting from economies of scale. Therefore, you decide to redo the projections under the following assumptions. Sales of 50,000 units in year 1 rar as ng by 52,000 units per year over the life of the project, a year 1 sales price o S260 unit decreasing by 11% annualy and a year 1 cost of $120 unit decreasing by 21% annually. In addition, new tax laws allow you to depreciate the equipment, costing $7.5 million over three rather than five years using straight-line depreciation. a. Keeping the underlying assumptions in Table 1 EE) that research and development expenditures total $15 million in year 0 and selling, general, and administrative expenses are $2.8 million per year, recalculate unlevered net income. (That is, reproduce Table 1 under the new assumptions given above. Note that we are ignoring cannibalization and lost rent.) b. Recalculate unlevered net income assuming, in addition, that each year 20% of sales comes from customers who would have purchased an existing Cisco router for $100Vunit and that this router costs $60 unit to manufacture. a. Keeping the underlying assumptions in Table 1 (EEE that research and development expenditures total $15 million in year O and selling, general, and administrative expenses are $2.8 million per year, recalculate unlevered net income. (That is, reproduce Table 1 under the new assumptions given above. Note that we are ignoring cannibalization and lost rent.) Calculate the yearly unlevered net income below: Round to the nearest dollar.) Year 0 Incremental Eamings Forecast (S000) Sales Cost of Goods Sold Gross Profits Selling, General, and Admin. Research and Development EBIT Income Tax at 40% Unlevered Net Income Enter any number in the edit fields and then click Check