After looking at the projections of the HomeNet project, you decide that they are not realistic. It is unlikely that sal

[answerhappygod]

After looking at the projections of the HomeNet project, you
decide that they are not realistic. It is unlikely that sales will
be constant over the four-year life of the project. Furthermore,
other companies are likely to offer competing products, so the
assumption that the sales price will remain constant is also likely
to be optimistic. Finally, as production ramps up, you anticipate
lower per unit production costs resulting from economies of scale.
Therefore, you decide to redo the projections under the following
assumptions:
a. Keeping the other assumptions that underlie
Table 8.3 the same, recalculate unlevered net income (that is,
reproduce Table 8.3 under the new assumptions. Please note that
cannibalization and lost rent must be included.
b. Calculate HomeNet’s net working capital requirements under
the new assumptions.
c. Calculate HomeNet’s FCF under the new
assumptions.
d. Should the project be taken or rejected based on NPV rule
under the assumptions? Please show me your calculation.
e. Should the project be still taken if the unit sales is 20%
lower than originally expected under the new assumptions? Please
show me your calculation.