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Costs $610,000 Tax rate 21% Required return 12% Initial investment in NWC $250,000 Fixed asset value at end $180,000 = MACRS percentages Year 1
Costs $610,000 Tax rate 21% Required return 12% Initial investment in NWC $250,000 Fixed asset value at end $180,000 = MACRS percentages Year 1 5 Year 2 5 Year 3 7 0.3333 0.4445 0.1481 8(Use cells A6 to B16 from the given information to complete this question. You must use the built-in Excel function 9to answer this question. Taxes on the salvage value should be negative for a tax liability and positive for a tax 0 credit.) 1 2 Output area: 23 24 25 Sales 26 Costs 27 Depreciation Year 0 Year 1 Year 2 Year 3 28 EBT 29 Taxes 30 Net income 31 32 Fixed asset book value in three years 33 Aftertax salvage value 34 Sell equipment 35 Taxes 36 Aftertax salvage value 37 Capital spending 38 Net working capital 39 OCF 40 Total cash flow INDU
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