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image text in transcribed \fY0 Sales Less COGS Gross Profit Less Dep EBIT Less Tax 35% Incremetal Earning Add Dep Less Inc in WC Less Cap Inv Inc FCF $ $ $ $ $ $ $ $ $ (96,000) $ $ (1,030,000) $ (1,126,000) $ NWC Beg End NWC CF $ $ $ Rate NPV = 10.40% $ 1,969,236 293,000 $ 389,000 $ (96,000) $ Y1 2,503,200 (932,400) 1,570,800 (147,187) 1,423,613 (498,265) 925,348 147,187 (21,000) $ $ $ $ $ $ $ $ $ Y2 2,503,200 (932,400) 1,570,800 (252,247) 1,318,553 (461,494) 857,059 252,247 68,000 $ $ $ $ $ $ $ $ $ $ 1,051,535 $ 1,177,306 $ 389,000 $ 410,000 $ (21,000) $ 410,000 $ 342,000 $ 68,000 $ Y3 2,503,200 (932,400) 1,570,800 (180,147) 1,390,653 (486,729) 903,924 180,147 49,000 450,419 1,583,490 342,000 293,000 49,000 Depreciation Schedul (MACRS-7Yr) Year MACRS % Asset Value Dep Accum Dep Ending Book 14.29% $1,030,000 $147,187 $147,187 $882,813 1 24.49% $1,030,000 $252,247 $399,434 $630,566 2 17.49% $1,030,000 $180,147 $579,581 $450,419 3 12.49% $1,030,000 $128,647 $708,228 4 8.93% $1,030,000 $91,979 $800,207 5 8.92% $1,030,000 $91,876 $892,083 6 8.93% $1,030,000 $91,979 $984,062 7 4.46% $1,030,000 $45,938 $1,030,000 8

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