1. Complete the following equation that assists in the calculation of the firm's net investment (NINV) for the new table saw and calculate its value. NINV - Purchase price + Annual depreciation expense, which equals $16,388. NINV = Purchase price + Shipping and Installation charges + Additional NWC, which equals $23,500. NINV = Purchase price + Additional NWC, which equals $20,000. 2. Complete the following tale that can be used to compute the firm's incremental operating cash flows. Note: Round your answers to the nearest whole dollar. Firm Value With Table Saw Net Change Firm Value Without Table Saw $1,500,000 Revenues 5843,750 $168,750 Less: Expenses Less: Depreciation Expense $0 Earnings Before Taxes $1,029,862 $411,945 $825,000 $330,000 $204,862 $81,945 $495,000 Less: Taxes Earnings After Taxes Plus: Adjustment for Non-Cash Expenses Net Cash Flow $617,917 $1,388 $ 122,917 $1,388 0 $495,000 3. Complete the following equation that assists in the calculation of the firm's terminal cash flow for the new table saw and calculate its value. NCF - Operating After-Tax Cash Flow + Salvage value, which totals $623,930 NCFT = Operating After-Tax Cash Flow + Recovery of Net working capital, which totals $624,305 NCF= Operating After-Tax Cash Flow + Salvage value + Recovery of Net working capital, which totals $628,930 Grade It Now Save & Continue Continue without saving 1. Complete the following equation that assists in the calculation of the firm's net investment (NINV) for the new table saw and calculate its value. NINV - Purchase price + Annual depreciation expense, which equals $16,388. NINV = Purchase price + Shipping and Installation charges + Additional NWC, which equals $23,500. NINV = Purchase price + Additional NWC, which equals $20,000. 2. Complete the following tale that can be used to compute the firm's incremental operating cash flows. Note: Round your answers to the nearest whole dollar. Firm Value With Table Saw Net Change Firm Value Without Table Saw $1,500,000 Revenues 5843,750 $168,750 Less: Expenses Less: Depreciation Expense $0 Earnings Before Taxes $1,029,862 $411,945 $825,000 $330,000 $204,862 $81,945 $495,000 Less: Taxes Earnings After Taxes Plus: Adjustment for Non-Cash Expenses Net Cash Flow $617,917 $1,388 $ 122,917 $1,388 0 $495,000 3. Complete the following equation that assists in the calculation of the firm's terminal cash flow for the new table saw and calculate its value. NCF - Operating After-Tax Cash Flow + Salvage value, which totals $623,930 NCFT = Operating After-Tax Cash Flow + Recovery of Net working capital, which totals $624,305 NCF= Operating After-Tax Cash Flow + Salvage value + Recovery of Net working capital, which totals $628,930 Grade It Now Save & Continue Continue without saving
