Capital Budgeting Assignment: Step-by-step instructions (1) Read the problem carefully and identify the information that is relevant for the capital budgeting analysis. (2) Enter the information in Part 1. Input data: Part 1. Input Data (in thousands Equipment cost Net Operating WC/sales Yearly sales (in units) Sales price per unit Variable cost per unit Non-variable costs amount) Tax rate WACC Inflation CCA rate Please note: all dollar figures need to be entered in thousands: e.g. enter 10,000 as 10. Only dollar numbers are entered in thousands. This is important, since the scale of the graph of the sensitivity analysis is pre-set. You will only see the graphs for the sensitivity analysis if you enter the dollar figures in thousands. (3) In Part 2 (CCA schedule) and Part 3 (Projected Net Cash Flows), enter only cell references to the input data, no numbers. If you enter numbers in this part, the sensitivity analysis will not work. Part 2. CCA Schedule Beg. UCC CCA End UCC Part 3. Projected Net Cash Flows (Time line of annual cash flows) Years Investment Outlays at Time Zero: Equipment Operating Cash Flows over the Project's Life: Units sold Sales price per unit Variable costs per unit Sales revenue Variable costs Non-variable operating costs Depreciation (equipment) Oper. income before taxes (EBIT) Taxes on operating income Net Operating Profit After Taxes (NOPAT) Add back depreciation Operating cash flow Working Capital: Required level of net operating working capital Required investment in NOWC Terminal Year Cash Flows: Net salvage value Net Cash Flow (Time line of cash flows) year 1 year 2 year 3 year 4 0 1 2 3 4