Initial investment EBIT - Taxes - A Depreciation XT + Salvage value - Tax on salvage - NOWC + Recapture of NOWC Total free cash flow $976,139 The net present value (NPV) of this replacement project is: $1,122,560 $732,104 Year 0 $829,718 Year 1 Year 2 Year 3 Year 4 Year 5

The net present value (NPV) of this replacement project is: $976,139 $1,122,560 5732,104 3829.718 The net present value (NPV) of this replacement project is: $976,139 $1,122,560 5732,104 3829.718