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based on first picture i need help filling total cash flows Sales (5000 of units @ $7 per unit) Variable Costs ($3.5 per unit) Fixed
based on first picture i need help filling total cash flows Sales (5000 of units @ $7 per unit) Variable Costs ($3.5 per unit) Fixed Costs Depreciation EBIT Taxes (34%) Net Income Operating Cash Flow = NI + Dep = 8630 $35000 $17500 $7000 $ 5000 $5500 1870 $3630 OCF ANWC -$ Capital -$ CFFA -$ Spending 0 1 $8630 $ Year 2 $8630 $ 3 $8630 $ $ Retail cost/item: $7.00 Variable cost/item (how much it costs to produce): $3.50 Fixed costs/year: $7000/year (you can make up this #) Cost of new equipment to make new product (CF): $20,000 Depreciation per year of new equipment: $5,000 a year Corporate Tax Rate: 21 percent. Required rate of return: 15% Create a pro forma income statement and determine net income and then operating cash flow / year. Based on the cash flows of your project, should you launch your product
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