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I am working on a project and stuck. I have been given a marginal tax rate of 40%. For Assets I have calculated the following.

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I am working on a project and stuck. I have been given a marginal tax rate of 40%. For Assets I have calculated the following.

image text in transcribedimage text in transcribed
Part 3. Salvage Value Calculations Building Equipment Total Net CF from Salvage Estimated Market Value (terminal year) $4,250,000 $2,050,000 Book Value (terminal year) $5,451,000 $2,423,520 Expected Gain or Loss $1,201,000 $373,520 Tax Liability or Credit Net cash flow from Salvage Part 4. Projected Cash Flows Investment Outlay: at Time Zero Building Equipment Investment in Working Capital Operating Cash Flows over the Project's Life U nits Sold Sales Price Sales Revenue Variable Costs Fixed Operating Costs Annual Depreciation (building + equipment) EBIT Taxes on Operating Income NOPAT (net operating profit after tax) Annual Depreciation (building + equipment) Operating Cash Flow Years 0 1 z 3 4 $10,255,000 $6,250,000 $5,500,000 1,250 1,275 1,299 1,325 $2,950.00 $3,032.60 $3,117.51 $3,204.80 $3,687,500 $3,865,049 $4,050,749 $4,245,371 $2,450,000 $2,498,020 $2,546,731 $2,596,393 $7,200,000 $7,200,000 $7,200,000 $7,200,000 $2,451,000 $2,801,000 $1,847,000 $1,531,480 $15,788,500 $16,364,069 $15,644,480 $15,573,244 l:l:l:l: excel formula

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