I am looking over this and I cant figure out how they get 29167 for the loss of depreciation of the old machine.

AutoSave . Off) GroupeAriel_S.A.docx - Protected View - Saved to this PC Search Thomas Reynolds TR X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments project will be positive and the project must be implemented. Exhibit 1 Projected Operating Costs, New Automatic Equipment Unit volume (000s) 496 546 600 660 660 660 660 660 660 660 Materials 542223 638197 751158 884113 946001 1012221 1083076 1158891 1240014 1326815 Direct Labor 524136 616909 726101 854621 914445 978456 1046948 1120234 1198651 1282556 Overhead 1566211 1675846 1793155 1918676 28+06 2196692 2350460 2514993 2691042 2879415 Total 2632570 2930952 3270414 3657410 48+06 4187369 4480484 4794118 5129707 5488786 Materials/unit 1.0932 1. 1697 1.2516 1.3392 1.433 1.5333 1.6406 1.7554 1.8783 2.0098 Direct labor/ unit 1.0567 1.1307 1.2098 1.2945 1.3852 1.4821 1.5859 1.6969 1.8157 1.9427 Cash Flow (MXN) (+) Cost Savings 727430 844008 980371 1139956 1E+06 1305135 1396496 1494250 1598848 1710767 (-) Tax on savings 254600.5 295402.8 343129.85 398984.6 426913 456797.25 488773.6 522987.5 559596.8 598768.45 (+) Sell old machine 175000 Book Value old mach 250000 Booked loss on asset sale 75000 (-) Loss f depreciation of old machine -29167 -29167 -29167 (+) Tax shield from write off 26250 (-) Purchase new mach 3500000 Depreciation 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 (+) Tax shield from dep. 122500 122500 122500 122500 122500 122500 122500 122500 122500 122500 (+) Savage value 0 Total Cash flow -3298750 566162.5 641938.2 730574.15 863471.4 915339 970837.75 1030222.4 1093762.5 1161751.2 1234498.55 NPV @ Pesos @ 12. 19%% 1478997.209 Convert in Euros @ 15.99MXNIE 92495. 13501 Waco in Euros 0.08 Page 3 of 3 611 words " Focus - + 179% Type here to search O w x calls 2:52 PM 10/22/2020