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please answer part a & b for thumbs up (Click on the following icon 0 in order to copy its contents into a spreadsheet) You

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(Click on the following icon 0 in order to copy its contents into a spreadsheet) You are evaluating the HomeNet project under the following assumptions: Sales of 50,000 units in year 1 increasing by 47,000 units per year over the life of the project, a year 1 sales price of \\( \\$ 260 / u n i t \\), decreasing by \9 annually and a year 1 cost of \\( \\$ 120 / u n i t \\) decreasing by \20 annually. In addition, new tax laws allow \100 bonus depreciation (all the depreciation expense, \\( \\$ 120 \\) million, occurs when the asset is put into use, in this case immediately). Research and development expenditures total \\$15 million in year 0 and selling, general, and administrative expenses are \\$2.8 millon per year (assuming there is no cannibalization). Also assume HomeNet will have no incremental cash or inventory requirements (products will be shipped directly from the contract manufacturer to customers). However, receivables related to HomeNet are expected to account for \15 of annual saies, and payables are expected to be \15 of the annual cost of goods sold. Under these assumptions, the unlevered net income, net working capital requirements and free cash flow are shown in the table: a. Using the FCF projections given, calculate the NPV of the HomeNet project assuming a cost of capital of \10 and \14. b. What is the IRR of the project in this case? a. Using the FCF projections given, calculate the NPV of the HomeNet project assuming a cost of capital of \10 and \14. The NPV of the FCF's of the HomeNet project assuming a cost of capital of \10 is S (Round to the nearest thousand dollars.) The NPV of the FCF's of the HomeNet project assuming a cost of capital of \12 is \\( \\mathrm{S} \\) (Round to the nearest thousand dollars.) The NPV of the FCF's of the HomeNet project assuming a cost of capitat of \14 is \\( \\$ \\) (Round to the nearest thousand dollars.) b. What is the IRR of the project in this case? The IRR is \\%. (Round to two decimal places.)

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