1 2 3 45 77 8 16 17 18 19 20 21 22 23 57 58 59 60 61 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 9 10 11 Depreciation 12 13 14 15 40 41 AutoSave Off H 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 File Paste Cost of Tester [Year 01 6 Installation and training costs CAPEX (Year 5] Annual cost savings Salvage value Book Value Clipboard K25 X Project Life Tax rate Cost of Capital a. Home B 00 17 Investment Outlags Equipment purchases Installation costs Initial Outlay D Free Cash Flows Operating Expense Savings Less: Depreciation Expense Additional Operating Income Less: Taxes NOPAT Plus: Depreciation Less: CAPEX Less: Working Capital Free Cash Flow b. Net Present Value Internal Rate of Return Discount Rates Given Esc Folock NPV Profile Arial 10 - A^ A V BIU A 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% Insert C $ 250,000 $ 10,000 $ 100,000 $ 70,000 $ 5,000 0.00 Straight Line 0 X V PROBLEM 2-10 $ (250,000) (10,0001 $(260,000) NPY 30% 12% V 10 years (260,000) D 17 Draw Font 1 V E 2 Net Presen