geling Como EASIEST O PLANET CREPES You have decided not to work for the Man, and are considering opening a breakfast food truck! Planet of the Crepes The truck will cost $23,000. It needs tires (SB00), registration ($200), new paint ($750), and a snappy picture / logo on the side ($250). You will depreciate this truck straight-line to zero over 5 years. Your projection is that you can sell 1,500 plates of food every year. Each plate will sell for $10, and the cost of the food on the plate is $2. There are no working capital needs. Fixed expenses include Insurance ($1,000 per year), gasoline ($800 per year), and electric ($1,200 per year). You want to model this potential new business out 5 years. At the end of Year 5, you will give the truck to the scrapyard for So and walk away. Your tax rate is 30%. You have no other businesses, so If you have a loss in any year, you will not have the benefit of any tax credits. Year 3 Year 2 Year 4 Year o Year 1 Item $10 $2 Less: Other Operating Exp. Year 5 Number of units sold 1,500 1.500 1,500 1.500 1,500 $ID Sale Price per unit $10 $10 $10 Cost per unit $2 $2 $2 $2 Net sales Revenue 12,000 12,000' 12,000 12,000 12,000 (2,000) (2.000) (2.000) (2.000) (2.000) Less: De preciglion (5,000) (5,000) (5,000) (5,000) (5,000) 5,000 5,000 5,000 5,000 51000 Less: Implied Taxes (1.500) (1.500) (1.500) (1,500) (1500) Plus: Depreciahon 5,000 5,000 5,000 5,000 5,000 +/- A wet operating waring copied O O o * A net operating T Capital (25,000) (25,000) 8500 8,500 8.500 8.500 8.500 EBIT Free Cash Flow 12 16 13 15