Question: please do all steps not just part A. pls Yoc are evaluating the HomeNet project under the following assumptions: S ales of 50,000 units in



Yoc are evaluating the HomeNet project under the following assumptions: S ales of 50,000 units in year 1 increasing by 55,000 unis per year over the life of the project, a year 1 sales price of 5260 unit, decreasing by 10% annually and a yoar 1 cost of 5120 unit decreasing by 21% annually, In adobion, now tax laws allow 100% bonus deproclasion (all the depreclation expense cocurs when the asset is put into use, in this case immed ately). Research and development expendtures totar $15 milion in year 0 and selling: generat, and adminiatrative expenses are $2.3 million per year (ossiming there is no canribalizabion). Under these assumptions the unlevered net income is shown in the table: . Suppose that HomeNet wil have no incremental cash or inventary. requerements (prodocts will bo shipped directly from the contract manufacturer to customers). However, receivables related to HomeNet are expocted to account for 15 K. of annual sales, and piyables are expected to be 15% of the annual cost of goods sold. a. Calculate HomeNers net working caphal requiements (that is, reproduce Table 8.4 under the assumptions giveo). b. Calculate HomeNers FCF (that is, reproduce Table 8.3 under the same assumptions). a. Calculate HomeNers net working captal requirements (that is, seproduce Table 8.4 under the assumptions given). The net working capeal for year 1 is $ (Round to the nearest thousand dollars.) Data table (Cick on the following icen 0 . n order to eopy its contents into a spreadsheet.) Cick on the following icon 0 in order to copy its conterts into a spreadiheet) (Cick on the following ison 0 in order to oopy its contents into a spreadsheet) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
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