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You are evaluating the HomeNet project under the following assumptions: Sales of 50,000 units in year 1 increasing by 49,000 units per year over the

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You are evaluating the HomeNet project under the following assumptions: Sales of 50,000 units in year 1 increasing by 49,000 units per year over the life of the project, a year 1 sales price of $260 unit, decreasing by 11% antwally and a year 1 cost of $120 /unit decreasing by 22% annually, In addich, new tax laws alow 100% bonus depreciation (ail the depreciafion expense cocurs year (assuming there is no cannbaloation). Under these assumptions the unlevered net inceme is shown in the table: Suppose that HomeNet wail have no incremental cash or inventory requirements (products will be shipped directly from the contract manutacturer to customers). However, recolvables related to HomeNet ace expected to account for 15% of annual salos, and payables are expected to be 15% of the annial cost of goods sold. a. Calculate HomeNers net working capital recuitements (that is, reproduce Table 8.4 under the assumptons given). b. Cabulate HomeNet's FCF (that is, reproduce Table a.3 uncer the same assumptians) a. Calculate HomeNers net working capital requirements (that is, reproduce Tatie 8.4 under the assumptions given). The net working capital for year 1 in 1 (Round to the nearest thousand dollars) Data table (Click on the following icon b. in order to copy its contents into a spreadsheet.) (Click on the following icon in order to copy its contents into a spreadsheet.) Data table Data table (Click on the following icon in order to copy its contents into a spreadsheet.)

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