Estimate and enter depreciation expense for years 2021 to 2025. Depreciation expense is based on the cost of the equipment + installation costs, ending book value, and the life of the asset (5 years). Apply formula 12-2). Then, estimate the book value. Book value at t =1 equals book value at t = 0 minus depreciation expense for the year 2021.

$400,000 and $800,000 500,000 Select a yearly amount between Select a growth rate between and 8% 5% Sales year 2021 Sales Growth Rate Fixed cost (% of sales) Tax Rate NWC as percentage of Sales Select a rate between 80% and 90% 8096 Select a tax rate between 2256 and 28% 2296 Select a tax rate between 1096 and 15% 1096 $ 200,000 16,000 $ Equipment Cost att = 0 Installation Costs at t=0 Resale Value at t = 5 Ending Book Value t=0 indicates the beginning of 2021, t=1 indicates the ending of year 2021 and the beginning of year 2022, ... $ 40,000 $ 21,600 Sales Projection 2021 2023 2024 2022 2 2025 5 1 4. Sales Projection $ 510,000 S 540,600 $ 573,036 S 607,418 $ 643,863 Net Working Capital Cash Flows 2021 2022 2023 2024 2025 1 2 3 4. 5 S 61,200 $ 65,520 S 72,890 S 77,264 Required NWC Change in NWC 68,764 S 3,244 $ S 4,320 $ 4,126 $ 4,374 $ (77,264) Depreciation Table 2021 2022 2023 2024 2025 0 1 2 3 4 5 Annual Depreciation Book Value $ 216,000.00 S 21,600.00 $400,000 and $800,000 500,000 Select a yearly amount between Select a growth rate between and 8% 5% Sales year 2021 Sales Growth Rate Fixed cost (% of sales) Tax Rate NWC as percentage of Sales Select a rate between 80% and 90% 8096 Select a tax rate between 2256 and 28% 2296 Select a tax rate between 1096 and 15% 1096 $ 200,000 16,000 $ Equipment Cost att = 0 Installation Costs at t=0 Resale Value at t = 5 Ending Book Value t=0 indicates the beginning of 2021, t=1 indicates the ending of year 2021 and the beginning of year 2022, ... $ 40,000 $ 21,600 Sales Projection 2021 2023 2024 2022 2 2025 5 1 4. Sales Projection $ 510,000 S 540,600 $ 573,036 S 607,418 $ 643,863 Net Working Capital Cash Flows 2021 2022 2023 2024 2025 1 2 3 4. 5 S 61,200 $ 65,520 S 72,890 S 77,264 Required NWC Change in NWC 68,764 S 3,244 $ S 4,320 $ 4,126 $ 4,374 $ (77,264) Depreciation Table 2021 2022 2023 2024 2025 0 1 2 3 4 5 Annual Depreciation Book Value $ 216,000.00 S 21,600.00