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Question content area top Part 1 You are evaluating the HomeNet project under the following assumptions: Sales of 5 0 comma 0 0 0 units
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You are evaluating the HomeNet project under the following assumptions: Sales of comma units in year increasing by comma units per year over the life of the project, a year sales price of $ unit decreasing by annually and a year cost of $ unit decreasing by annually. In addition, new tax laws allow bonus depreciationall the depreciation expense occurs when the asset is put into use, in this case immediately Research and development expenditures total $ million in year and selling, general, and administrative expenses are $ million per yearassuming there is no cannibalization Under these assumptions the unlevered net income is shown in the table: LOADING.... Suppose that HomeNet will have no incremental cash or inventory requirementsproducts will be shipped directly from the contract manufacturer to customers However, receivables related to HomeNet are expected to account for of annual sales, and payables are expected to be of the annual cost of goods sold.
a Calculate HomeNet's net working capital requirementsthat is reproduce Table LOADING... under the assumptions given
b Calculate HomeNet's FCFthat is reproduce Table LOADING... under the same assumptions
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