Question
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 %15.8%
of sales and its payables are
15.7 %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 $23,330 $26,705 $23,841 $8,651 COGS $9,431 $10,796 $9,638 $3,497
The required investment in net working capital for year 0 is
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