Estimate and enter the required NWC at the beginning of each year (t=0 for year 2021, t = 1 for year 2022, and so on). The required NWC is 12% of anticipated sales for the following year. Then, calculate the change in NWC for years 2021 to 2025. At the end of the project (t=5), the full amount of the project is recuperated in full.

Data $400,000 and $800,000 500,000 Sales year 2021 Sales Growth Rate Fixed cost (% of sales) Select a yearly amount between Select a growth rate between and 8% 5% Select a rate between 80% and 90% 80% Tax Rate Select a tax rate between 2256 and 2896 2296 NWC as percentage of Sales Select a tax rate between 10% and 15% 1096 S 200,000 $ 16,000 Equipment Cost at t = 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 S Sales Projection 2021 2022 2023 2024 2025 0 1 2 3 4 5 Sales Projection $ 510,000 $ 540,600 $ 573,036 $ 607,418 $ 643,863 Net Working Capital Cash Flows 2021 2022 2023 2024 2025 1 2 3 4 5 Required NWC Change in NWC Data $400,000 and $800,000 500,000 Sales year 2021 Sales Growth Rate Fixed cost (% of sales) Select a yearly amount between Select a growth rate between and 8% 5% Select a rate between 80% and 90% 80% Tax Rate Select a tax rate between 2256 and 2896 2296 NWC as percentage of Sales Select a tax rate between 10% and 15% 1096 S 200,000 $ 16,000 Equipment Cost at t = 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 S Sales Projection 2021 2022 2023 2024 2025 0 1 2 3 4 5 Sales Projection $ 510,000 $ 540,600 $ 573,036 $ 607,418 $ 643,863 Net Working Capital Cash Flows 2021 2022 2023 2024 2025 1 2 3 4 5 Required NWC Change in NWC