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You are evaluating the HomeNet project under the following$$ assumptions: new tax laws allow$100\%$ bonus depreciation$($all the depreciation$$ expense, $$$$7\mathrm{.}5$million$,$ occurs when the asset is put into$$ 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 and assuming a cost of capital of $12\%,$ calculate the$$ following:

a$.$ The$$ break$-$even annual sales price decline$$ if: sales of $50$ comma $000$ units in year $1$ increasing by $51$ comma $000$ units per year over the life of the$$ project, the year $1$ sales price of $$$$260\mathrm{.}00/$unit$,$ and the year $1$ cost of $$$$120\mathrm{.}00/$unit decreases by $21\%$ annually. See LOADING....

b$.$ The$$ break$-$even annual unit sales increase$$ if: sales are $50$ comma $000$ units in year$1,$ the year $1$ sales price of $$$$260\mathrm{.}00/$unit$,$ decreases by $12\%$ annually and the year $1$ cost of $$$$120\mathrm{.}00/$unit decreases by $21\%$ annually.

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