Given the value drivers, what is the capital spending in year 0 and year 5.

VALUE DRIVERS Sales Growth yr 2-3 Sales Growth yr 4 Sales Growth yr 5 Expenses as a % of Slaes Cost of New System Salvage Value of New System Old System Resale New System Resale in yr 5 Tax Rate Required Rate of Return Project Time Period Time Period for Depreciation 5.5% -25.0% -25.0% 67.40% $1,900,000 $100,000 $253,165 $400,000 21.00% 9.50% 5 6.00 Years 0 1 2 3 4 5 Capital Spending LOCE VALUE DRIVERS Sales Growth yr 2-3 Sales Growth yr 4 Sales Growth yr 5 Expenses as a % of Slaes Cost of New System Salvage Value of New System Old System Resale New System Resale in yr 5 Tax Rate Required Rate of Return Project Time Period Time Period for Depreciation 5.5% -25.0% -25.0% 67.40% $1,900,000 $100,000 $253,165 $400,000 21.00% 9.50% 5 6.00 Years 0 1 2 3 4 5 Capital Spending LOCE