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Assuming that the numbers are correct, is this the correct way of including erosion costs in the cash flow projection? Wrap Text General Merge &

image text in transcribedAssuming that the numbers are correct, is this the correct way of including erosion costs in the cash flow projection?

Wrap Text General Merge & Center $ % , .000 .00 .0 Insert Delete F Conditional Format as Cell Formatting Table Styles Styles Alignment Number Cells F G H 1 2 K M 0 1 2 3 4 5 Year Operating Cash Flow Quantity Price Revenue Cost per Unit Total Cost of Goods Sold Erosion Costs SG&A Expenses Depreciation 1,500 1,650 1,815 1,997 2,196 S 9,995.00 S 9,995.00 $ 9,995.00 S 9,995.00 S 9,995.00 $ 14,992,500.00 $ 16,491,750.00 $ 18,140,925.00 $ 19,955,017.50 $ 21,950,519.25 S 5,000.00 S 5,000.00 S 5,000.00 S 5,000.00 S 5,000.00 $ 7,500,000.00 $ 8,250,000.00 S 9,075,000.00 $ 9,982,500.00 $ 10,980,750.00 $2,000,000 $2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 3,200,000.00 S 3,200,000.00 $ 3,200,000.00 $ 3,200,000.00 $ 3,200,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 5 2,000,000.00 $ 292,500.00 $ 1,041,750.00 $ 1,865,925.00 S 2,772 7.50 $ 3,769,769.25 $ 87,750.00 $ 312,525.00 S 559,777.50 $ 831,755.255 1,130,930.78 $ 2,204,750.00 S 2,729,225.00 S 3,306,147.50 $ 3,940,762.25 S 4,638,838.48 EBIT Taxes Operating Cash Flow $ (10,000,000.00) $ (449,775.00) S (494,752.50) $ (544,227.75) S Net Investment Capital Investment Operating Capital Investment Salvage Value of Fixed Assets Operating Capital Recapture Tax Impact of Salvage Tax Impact of Operating Capital Recapture (598,650.53) S (658,515.58) $ 3,000,000.00 $ 2,745,921:35 $ (900,000.00) $ Net Investment $ (10,000,000,00) S (449,775.00) S (494,752.50) S (544.227.75) $ (598,650.53) S 4,187,405.78 Project Cash Flow Cummulative Cash Flow $ (10,000,000.00) $ 1,754,975.00 $ 2,234,472.50 $2,761,919.75 $ 3,342,111.73 $ 8,826,244.25 $ (10,000,000,00) $ 18,245,025.00) $ (6,010,552.50) $ (3,248,632.75) S 93,478.98 $ 8,919,723.23 PY Factor 9096 08274 07526 0.6846 0.6227

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