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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 15.7 % 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 comma 330 $ 26 comma 705 $ 23 comma 841 $ 8 comma 651

COGS $ 9 comma 431 $ 10 comma 796 $ 9 comma 638 $ 3 comma 497

The required investment in net working capital for year 0 is $ ???

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