Fill in every blank in this picture as the answer. Make sure to do the capital requirements and total cash flows for each of the years as in the picture.

Sales: $$713,500$

Costs: $$497,500$

Depriciation:$$87,400$

EBIT:$$128,800$

Taxes$(21\%)$: $27,048$

Net Income: $101,752$

OCF: $$189,152$

Exercise II

Based on the following information for Project X$,$ should we undertake the venture? Calculate the NPV assuming a $28$ percent required return and a $21$ percent tax rate.

Project $x$ involves a new type of graphite composite in$-$line skate wheel. We think we can sell $6,000$ units per year at a price of $1,000$ each. Variable costs will run about $$400$ per unit, and the product should have a four$-$year life.

Fixed costs for the project will run $$450,000$ per year. Further, we will need to invest a total of $$1,250,000$ in manufacturing equipment. The depreciation amount is $$312,500$ each year. We will have to invest $$1,150,000$ in net working capital at the start.