Initial investment Sales Depreciation straight-line over life Operating expenses Net working capital Tax rate Required return $$3,700,0002,650,000 4 $ 4 40% 175,000 25% 13% Output area: Initial cash outlay Equipment NWC Total Sales Costs Depreciation EBT Tax Net income OCF \begin{tabular}{c} Year \\ \hline 0 \\ 1 \\ 2 \\ 3 \\ 4 \end{tabular} Cashflow NPV