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-How much is the year 5 incremental free cash flow and incremental earnings for this project in millions? -How much is the net present value
-How much is the year 5 incremental free cash flow and incremental earnings for this project in millions?
Linksys is considering the development of a wireless home networking appliance, called HomeNet Sales forecast for HomeNet is 50,000 units per yoar Linksys expects the product will have a four-year life and an expected wholesale pnce of $250 Actual production will be outsourced at a cost of $110 per unit Linksys will rent the lab space but will need to purchase $75 million of now equipment. The lab will be operational at the end of one year Linksys expects to spend $2 8 million per year on rental costs for the lab space The lab equipment will be depreciated using the straight line method over a 5 year life Linksys' marginal corporate tax rate is 40% The cost of capital for this project is 12.00% -How much is the net present value for this project?
-How much is the year 0 incremental free cash flow for this project in millions?
-How much is the annual year 1 to year 4 incremental free cash flow and incremental earnings for this project in millions?
-How much is the internal rate of return for this project?
-How much is the NPV for this project in millions?
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