Question
Year 0 1 2 3 4 Sales 23,355 26,267 23,586 8,532 COGS 9,441 10,619 9,535 3,449 Suppose that Linksys is considering the development of a
Year 0 1 2 3 4
Sales 23,355 26,267 23,586 8,532
COGS 9,441 10,619 9,535 3,449
Suppose that Linksys is considering the development of a wireless home networkingappliance, calledHomeNet, that will provide both the hardware and the software necessary to run an entire home from any Internet connection.Linksys's receivables are 15.5% of COGS. Forecast the required investment in net working capital for HomeNet assuming that sales and cost of goods sold(COGS) will be asfollows:
The required investment in net working capital for year 0 is $
The required investment in net working capital for year 1 is $
The required investment in net working capital for year 2 is $
The required investment in net working capital for year 3 is $
The required investment in net working capital for year 4 is $
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