A
B
C
D
E
F
G
H
16% of the projected sales revenue increase or decrease for the following year.
Year 1 unit sales
82,000
Year 2 unit sales
90,200
Year 3 unit sales
99,200
Year 4 unit sales
84,000
Year 5 unit sales
73,000
Initial NWC
$
1,100,000
Additional NWC/year
Fixed costs
$
3,100,000
Variable cost per unit
$
240
Unit price
$
360
Equipment cost
$
14,000,000
Salvage value (% of original cost
20%
Tax rate
35%
Required return
16%
MACRS depreciation
14.29%; Year 1
24.49%; Year 2
17.49%; Year 3
12.49%; Year 4
8.93%; Year 5
Output area:
Year
Ending book value
Sales
Variable costs
Fixed costs
Depreciation
EBIT
Taxes
Net income
Depreciation
Operating cash flow
Net cash flows
Operating cash flow
Change in NWC
Capital spending
Total cash flow
Net present value
Internal rate of return
0
1
2
3
4
5
