Question: help & please show equations. thank you You are evaluating the Home octunder the following assumptions Sales of 50.000 units year increasing by 40 000

help & please show equations. thank you
help & please show equations. thank you You are evaluating the Home
octunder the following assumptions Sales of 50.000 units year increasing by 40
000 units per year over these of the project a year sales
price of $200 unt decreasing by annually and a year cost of

You are evaluating the Home octunder the following assumptions Sales of 50.000 units year increasing by 40 000 units per year over these of the project a year sales price of $200 unt decreasing by annually and a year cost of $120/unt decreasing by 20. In addition, new tax laws allow 100% bonus depreciation the depresion expense occurs when the assets put to use this case immediately Research and development expenditure 315 million yew and singer and sative expenses we $2.5 milion per year (assuming there is no cannibalization) Under the month unleveredne income a shown in the Scoose that HomeNew have no incrementat cash or inventory requirements products will be shipped directly from the contractanture to customers. However, we read to Home expected to account for 15 of annual sales and paties are expected to be 1 of the annual cost of goods sold 2. Calculate Homer's networking capitale that a reproduce Table 84 underesting b. Calculate Homes FOF.produce Table under the same assumptions) CHD 1. Calcule Homes for rent that reproduce Table under the sponge The networecard Round to meet thousand dolar) 2 08 230.00 08.00 146 215 31 78.80 104 105.03 81.44 (2.800) (2.800) 2.800) 20% 20% 20% Year HomeNet Units Sales (0005) 48 50 Sales Price ($/unit) 0% 280 Cost of Goods Sold (Sunit) 20% 120 Operating Expenses (5000s) Hardware & Software Develop (15,000) Marketing & Technical Support (2.800) Capital Expenditures Lab Equipment (7.500) Depreciation 100% Corporate Tax Rate 20% 20% on the following icon in order to copy its contents into a spreadsheet.) Year 0 ncremental Earnings Forecast (5000) 1 Sales 13.000 2 Cost of Goods Sold 10.000) 3 Gross Profits 7.000 4 Seling. General, and Administrative (2.800) 5 Research and Development (15,000) 8 Depreciation (7.500) 7 EBIT (22.500) 4.200 8 Income Tax at 20% 4,500 (840) Unlevered Net Income (18,000) 3.300 3 4 23.187 31.435 38.010 (0.408) (11.213) (11.010) 13.770 20.222 20.001 (2.800) (2,800) (2.800) 10.070 (2.108) 8.783 17.422 (3,484) 13.038 23.201 (4.858) 18.633 HomeNet's Net Working Capital Requirements Year 2 3 Net Working Capital Forecast (5000) 1 Cash Requirements 2 Inventory Receivables (15% of sales) 4 Payable (15% of COGS) 5 Net Working Capital 3.525 (1.425) 2.100 3.525 3.525 3.525 - (1.425) (1.425) (1.425) - 2.100 2.100 2.100 (Click on the following icon in order to copy its contents into spreadsheet) 2 Calculation of HomeNet's Free Cash Flow Year incremental Earnings Forecast (5000) 1 Sales 2 Cost of Goods Sold 3 Gross Profits 4 Selling General, and Administrative 6 Research and Development 0 Depreciation 23.500 (0.500) 14.000 (3.000) 23.500 10.500) 14.000 (3.000) 23.500 23.500 (0.500) (0.500) 14.000 14.000 (3.000) (3.000) (15,000) 7 EBIT (15,000) 3.000 (12.000) (1.500 0.500) 0.500 0.500 (1.000) (1.000) 7.000 7.800 (1.500) (0.500) (1.500 0.500 0.500 (1.500) (1.000) (1.000) 300 7.800 7,600 (1.200) 8 Income Tax at 20% Unlevered Net Income Free Cash Flow (0001) 10 Plus Depreciation 11 Less: Capital Expenditures 12 Less: Increases in NWC 13 Free Cash Flow 1,500 1.500 1,500 1.500 1,500 (7.500) (2.100) 7.000 2.100 2.400 (10.500) 0.100 2.100 0.100

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