Texts:
Year 0 -$80,000.00
Year 1
Year 2
Year 3 $29,160.00
Year 4 $31,000.00
Year 5
Full price of machine
Increase in net working capital -$2,000.00
Incremental revenue - costs
Depreciation
Operating profit before taxes
Taxes
Operating profit after taxes
Add back depreciation
Operating cash flow
Sale of machine
Taxes
Net salvage
Return of net working capital
Total cash flow
Year 0 -$80,000.00
NPV $20,113.09
What is the total cash flow in Year 0?
Year 1
Year 2
Year 3 $29,160.00
Year 4 $31,000.00
Year 5
$31,000.00
$31,000.00
$31,000.00
$31,000.00
$31,000.00
$26,400.00
$36,000.00
$12,000.00
$5,600.00
$0.00
$4,600.00
-$5,000.00
$19,000.00
$25,400.00
$31,000.00
$1,840.00
-$2,000.00
$7,600.00
$10,160.00
$12,400.00
$2,760.00
-$3,000.00
$11,400.00
$15,240.00
$18,600.00
$26,400.00
$36,000.00
$12,000.00
$5,600.00
$0.00
$29,160.00
$33,000.00
$20,840.00
$18,600.00
Year $20,840.00
$10,000.00
$4,000.00
$6,000.00
$2,000.00
Year 0 -$80,000.00
Year 1
Year 2
Year 3
Year 4
Year 5
Full price of machine
Increase in net working capital -$2,000.00
Incremental revenue - costs
Depreciation
Operating profit before taxes
Taxes
Operating profit after taxes
Add back depreciation
Operating cash flow
$31,000.00
$31,000.00
$31,000.00
$31,000.00
$31,000.00
$26,400.00
$36,000.00
$12,000.00
$5,600.00
$0.00
$4,600.00
-$5,000.00
$19,000.00
$25,400.00
$31,000.00
$1,840.00
-$2,000.00
$7,600.00
$10,160.00
$12,400.00
$2,760.00
-$3,000.00
$11,400.00
$15,240.00
$18,600.00
$26,400.00
$36,000.00
$12,000.00
$5,600.00
$0.00
$29,160.00
$33,000.00
$20,840.00
$18,600.00
Sale of machine
Taxes
Net salvage
$10,000.00
$4,000.00
$6,000.00
Return of net working capital
$2,000.00
Total cash flow
$29,160.00
$33,000.00
$20,840.00
NPV
$20,113.09
What is the total cash flow in Year 0?