D 5 6 Asset investment 7 Estimated annual sales $ 8 Costs 9 Net working capital 10 Pretax salvage value 69 69 69 69 69 2,900,000 2,190,000 $ 815,000 $ 300,000 210,000 11 Tax rate 21% 12 Project and asset life 13 Required return 14 MACRS percentages 15 Year 1 16 Year 2 17 Year 3 18 19 3 12% 0.3333 0.4445 0.1481 F G H 20 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to calculate the NPV 21 22 Sales 23 Costs 24 Depreciation 25 EBT 26 Taxes 22 Sales 23 Costs 24 Depreciation 25 EBT 26 Taxes 27 Net income 28 29 Fixed asset book value 30 in three years 31 32 Aftertax salvage value 33 Sell equipment 34 Taxes 35 Aftertax cash flow 36 37 Capital spending 38 Net working capital 39 40 OCF Not on 25 EBT 26 Taxes eBook 27 Net income 28 29 Fixed asset book value 30 in three years 31 32 Aftertax salvage value 33 Sell equipment 34 Taxes 35 Aftertax cash flow 36 37 Capital spending 38 Net working capital 39 OCF 40 Net cash flow 41 42 NPV 43 44 45 46 Shoot1