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Suppose that Linksys is considering the development of a wireless home networking appliance, called HomeNet, that will provide both the hardware and the software necessary

Suppose that Linksys is considering the development of a wireless home networking appliance, called HomeNet, that will provide both the hardware and the software necessary to run an entire home from any Internet connection. Linksys's receivables are

15.8%

of sales and its payables are

15.2%

of COGS. Forecast the required investment in net working capital for HomeNet assuming that sales and cost of goods sold (COGS) will be as follows:

Year

0

1

2

3

4

Sales

$23,676

$26,620

$23,670

$8,517

COGS

$9,571

$10,761

$9,569

$3,443

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