As your boss is busy with a due diligence of another target dental clinic in PRC, you have been tasked to assist in completing a forecasted cash flow for an equipment which manufactures a specialized dental ceramic product know as zirconium oxide. The following information was handed over to you.

(1) Cost of New equipment is $600,000

(2) A consultant charged $180,000 for a feasibility study carried out last month.

(3) Estimated Sales demand is as follows;

Year	No of Unit
1	12,000
2	20,000
3	25,000
4	16,000

(4) The Unit selling price is to be $120 in first 2 years and $100 in year 3 and $80 in year 4

(5) Variable Cost is 60% of selling Price.

(6) Fix Cost ( excluding depreciation ) are estimated to be $120,000 in the first year and expected to be increase with inflation at 5% per year.

(7) Working Capital amounting 20% of sales is request at the start of each year. This will be recovered in terminal year.

(8) The firm policy is to depreciate this fixed asset over three years to zero net book value. It can then be sold for $30,000 at the end of the project.

(9) Incremental tax rate is 17%

Please complete the yellow colored box with the correct values for Forecasted Income Statement and Forecasted Cash flows in the excel sheets respectively.

Year Sales Variable Cost Gross Profit Fixed Overheads Depreciation EBIT Tax @ 17% NOPAT 1 2 3 4 5 Year Initial Investments Feasibility Study Operating Cash Flows Net Working Capital After Tax Salvage Value Net Cash Flow 1 2 3 4 5