I am having trouble uploading an excel file- here is an image of 2 things needed for this quesitons. Attached is table 8.3 and the graph data the professor created.

Key Assumptions Year O Year 1 Year 2 Year 3 Year 4 Year 5 Revenue and Costs lomenet Units Sold 100000 100000 100000 100000 HomeNet Ave. Price/Unit $260 $260 $260 $260 HomeNet Cost/Unit ($110) ($110) ($110) ($110) Cannibalization Rate 25% 25% 25% 25% Old product Ave. Price/Unit $100 $100 $100 $100 Old Product Cost/Unit ($60) ($60 $60 ($60 Operating Expenses Marketing & Support ($2,800,000) ($2,800,000) ($2,800,000) ($2,800,000) Lost Rent ($200,000 ($200,000) ($200,000) ($200,000) Hardware R&D (expensed) ($5,000,000) Software R&D (expensed) ($10,000,000) Lab Equipment (capitalized) $7,500,000) Other Assumptions Depreciation schedule 0% 20% 20% 20% 20% 20% Corporate tax rate 20% 20% 20% 20% 20% 20% Receivables (% of sales) 15% 15% 15% 15% 15% Payables (% of COGS) 15% 15% 15% 15% 15% Cost of Capital 12% Base Case Sales $26,000,000 $26,000,000 $26,000,000 $26,000,000 COGS ($11,000,000) ($11,000,000) ($11,000,000) ($11,000,000) SG&A ($2,800,000) ($2,800,000) ($2,800,000) ($2,800,000) R&D ($15,000,000 Depreciation $1,500,000) ($1,500,000) ($1,500,000) ($1,500,000) ($1,500,000 EBIT $15,000,000) $10,700,000 $10,700,000 $10,700,000 $10,700,000 $1,500,000 Income tax $3,000,000 ($2,140,000) ($2,140,000) ($2,140,000) ($2,140,000) $300,000 Unlevered NI ($12,000,000) $8,560,000 $8,560,000 $8,560, 0 $8,560,00 ($1,200,000) Indirect Effect Lost Rental and Canibalization Sales $23,500,000 $23,500,000 $23,500,000 $23,500,000 COGS ($9,500,000) ($9,500,000) ($9,500,000) ($9,500,000) SG&A ($3,000,000 ($3,000,000) ($3,000,000) ($3,000,000) R&D ($15,000,000 Depreciation $1,500,000) ($1,500,000) ($1,500,000) ($1,500,000) ($1,500,000 EBIT ($15,000,000) $9,500,000 $9,500,000 $9,500,000 $9,500,000 $1,500,000) Income tax $3,000,000 ($1,900,000) ($1,900,000) ($1,900,000) ($1,900,000) $300,000 Unlevered NI ($12,000,000) $7,600,000 $7,600,000 $7,600,000 $7,600,000 ($1,200,000)Operating Cash Flows ($12,000,000) $9,100,000 $9,100,000 $9,100,000 $9,100,000 $300,000 Capital Expenditures ($7,500,000) 0 0 0 O 0 Working Capitals $2,100,000 $2,100,000 $2,100,000 $2,100,000 Change in Working Capital $2,100,000 $0 $0 $0 ($2,100,000) Cash Flow from Working Capital ($2,100,000) $0 $0 $0 $2,100,000 Free Cash Flows ($19,500,000) $7,000,000 $9,100,000 $9,100,000 $9,100,000 $2,400,000 NPV 5 7,626,704 IRR 27.86% 1 2 3 4 Incremental Earnings Forecast [$000s] 1 Sales 23,500 23,500 23,500 23,500 2 Cost of Goods Sold i9 5001 i9 500} [9 500} {9 500} 3 Gross Profit 14,000 14,000 14,000 14,000 4 Selling, General, and Administrative (3,000} {3,000} {3,000} {3,000} 5 Research and Development {15,000} E Depreciation (1,500:l {1,500} {1,500} {1,500} 11 ,5001' 3' EBIT {15,000} 9,500 9,500 9,500 9,500 {1.500) 3 Income Tax at 20% 3,000 (1,900:I {1,900} {1,900} {1,900} 300 9 Unlevered Net Income {12,000} 1600 1600 1600 1600 [1,2001 Free ash Flow [$0005] 11] Plus: Depreciation 1,500 1,500 1,500 1,500 1,500 11 Less: Capital Expenditures 0:500} _ _ _ _ 12 Less: Increases in NWC {2.100} 2,100 13 Free Cash Flow {19,500} 7,000 9,100 9,100 9,100 2,400