You are evaluating the HomeNet project under the following$$ assumptions: Sales of $50,000$ units in year $1$ increasing by $46,000$ units per year over the life of the$$ project, a year $1$ sales price of $$260/$unit$,$ decreasing by $9\%$ annually and a year $1$ cost of $$120/$unit decreasing by $19\%$ annually. In$$ addition, new tax laws allow$100\%$ bonus depreciation$($all the depreciation expense occurs when the asset is put into$$ use, in this case$$ immediately$).$ Research and development expenditures total $$15$ million in year $0$ and$$ selling, general, and administrative expenses are $$2\mathrm{.}8$ million per year$($assuming there is no$$ cannibalization$).$ Under these assumptions the unlevered net income is shown in the$$ table in the photo. Suppose that HomeNet will have no incremental cash or inventory requirements$($products will be shipped directly from the contract manufacturer to$$ customers$).$ However, receivables related to HomeNet are expected to account for $15\%$ of annual$$ sales, and payables are expected to be $15\%$ of the annual cost of goods sold.

a$.$ Calculate$$ HomeNet's net working capital requirements$($that is$,$ reproduce Table $8\mathrm{.}4$ under the assumptions$$ given$).$

b$.$ Calculate$$ HomeNet's FCF$($that is$,$ reproduce Table $8\mathrm{.}3$ under the same$$ assumptions$)$