Calculations must be done in Excel - You must generate your own spreadsheet

This question should be done using these instructions

?Table One: Calculate the impact on taxable income (TI) and then the tax cash flows

?Table Two: Set out all the cash flows to calculate NCFAT

For example :

Beginners Method (two tables one for tax and one for cash flows) TAX 0 2 3 Microsoft Office Excel Worksheet Cash Benefits 16,000 20,000 12,000 Inv Allow 20% -5,600 Deprec -11,200 -6,720 -4,032 Loss on Sale -5,548 Taxable Income -800 13,280 2,420 Tax @, 30% 240 -3,984 726 Cash Flows N 3 Tax 240 -3,984 -726 Cash Benefits 16,000 20,000 12,000 Salvage Value 500 Outlay -28,000 NCFAT -28,000 16,240 16,016 11,774 DCF @ 15% 28,000 14,122 12,110 7,742 NPV 5,974