1. Problem 4 2 Compute Pro Forma Income Statement in yellow cells Given Project Input Data Compute Cash Flows on next tab Cash Flow! 4 New and improved Shark Attractant Project Pro Forma Income Statement 6 7 Estimated sales (cans) 60,000 Sales (60,000 units at $4.00/unit) 8 Sales Price per can $4.00 Variable Costs ($2.50/unit) 9 Cost per can $2.50 Gross profit 10 Estimated life (years) 5 Fixed costs 11 Fixed costs (per year) $37,430 Depreciation (+$100,000/5) 12 Initial equipment cost $100,000 IEBIT 13 .100% depreciated over 5-year life Taxes (25%) 14 Investment in NWC $20,000 Net Income 15 Tax rate 25% 16 Cost of capital 20% 17 18 19 20 21 2 24 roblem 4 24 25 Compute cells in yellow 26 27 Pro Forma Income Statement 28 Year 1 2 4 29 Sales 30 Variable Costs 31 Gross Profit 32 Fixed Costs 33 Depreciation 34 EBIT 35 Taxes 36 Net Income 37 38 Cash Flows 39 Operating Cash Flow 40 Changes in NWC 41 Net Capital Spending 42 Cash Flow From Assets 43 44 Net Present Value 45 0 3 5