You are evaluating the HomeNet project under the following assumptions: Sales of $50,000$ units in year $1$ increasing by $50,000$ units per year over the life of the project, a year $1$ sales price of $$260\mathrm{.}00/$unit$,$ decreasing by $11\%$ annually and a year $1$ cost of $$120\mathrm{.}00/$unit decreasing by $21\%$ 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$).$ Also assume 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. Under these assumptions, the unlevered net income, net working capital requirements, and free cash flow are shown in the table:

a$.$ Using the FCF projections given, calculate the NPV of the HomeNet project assuming a cost of capital of $11\%,13\%,$ and $15\%.$

b$.$ What is the IRR of the project in this case?

a$.$ Using the FCF projections given, calculate the NPV of the HomeNet project assuming a cost of capital of $11\%,13\%,$ and $15\%.$

The NPV of the FCF$\text{'}$s of the HomeNet project assuming a cost of capital of $11\%$ is $ $($Round to the nearest thousand dollars.$)$