A local supermarket is planning to install a sushi vending machine. The machine will cost

$$70,000$ today. Your accountants tell you it must be depreciated evenly to zero over $5$ years.

Sushi revenues the first year are estimated to be $$55,000,$ increasing by $7\%$ each year. Sushi

and labor costs will be $$38,000$ the first year, also increasing by $7\%$ each year. Assume these

revenues and costs are realized at the end of the year $($so they show up for the first time in

year $1).$

Health regulations mandate that supermarket sushi vending machines must be replaced every

$5$ years. You expect to be able to sell the machine to an eccentric foodie at the end of $5$ years

for $$38,000.$ An initial $$1,000$ investment in inventory must also be made today. Inventory

grows by $7\%$ each year. At year $5$ inventory drops to zero. The tax rate is $21\%,$ and the

discount rate is $11\%.$

What is the depreciation expense each year

comma but no dollar sign e$.$g$.15,000)$

What is the Revenue in year $5$

cents e$.$g$.50,000)$

What is the EBIT at year $4$

e$.$g$.8,036$