A	Complete the spreadsheet to estimate the project's annual after-tax cash flows.	Cash Flows In	A	Outflow-Purchase	350,000
B	What is the investment's Net Present Value (NPV) at a discount rate of 10 percent?	Net Present Value	B	Print screen
C	What is the investment's Internal Rate of Return ?	Internal Rate of Return	C	Print screen
D	What is the investment's NPV at a discount rate of 20 percent?		D	Print screen

Facts and Assumptions
Equipment initial cost	$350,000
Depreciable life yrs.	7
Expected life yrs.	10
Salvage value	$0
Straight line depreciation
Earrings Before Taxes	$28,000
Tax rate	38%
Growth rate in EBIT	3%
Discount rate	10%

Year	0	1	2	3	4	5	6	7	8	9	10
Initial cost	350,000
Annual depreciation (cash to be added)		$ 50,000	50,000	50,000	50,000	50,000	50,000	50,000
Earrings Before Taxes		$ 28,000	$28,840	$29,705	$30,596	$31,514	$32,459	$33,433	$34,436	$35,469	$36,533
Taxes		$ 10,640	10,959	11,288	11,626	11,975	12,334	12,705	13,086	13,478	13,883
Earrings After Taxes		$ 17,360	$ 17,881	$18,417	18,970	19,539	20,125	20,728	21,350	$21,991	$22,650
After-tax cash flow	(350,000)	$ 67,360	67,881	68,417	68,970	69,539	70,125	70,728	21,350	21,991	22,650