Input area: A Original cost of land Current land value Land value in 4 years Marketing study Year 1 sales Year 2 sales Year 3 sales Year 4 sales Sales price Fixed costs Variable costs Equipment costs Pretax salvage value Net working capital Tax rate Required return Year 1 depreciation Year 2 depreciation Year 3 depreciation Year 4 depreciation 2,100,000 2,300,000 2,400,000 125,000 3,600 4,300 5,200 3,900 750 415,000 15% 3,500,000 350,000 125,000 38% 13% 33.33% 44.45% 14.81% 7.41% A A Output area: Aftertax salvage value Sale price Taxes Total Year o Year 1 Year 2 Year 3 Year 4 Revenues Fixed costs Variable costs Depreciation EBT Taxes Net income OCF Capital spending Land Net working capital Total cash flow Discounting Factors DCF Captial Budgeting Indicators - NPV $ IRR Payback Period Discounted Payback Period Input area: A Original cost of land Current land value Land value in 4 years Marketing study Year 1 sales Year 2 sales Year 3 sales Year 4 sales Sales price Fixed costs Variable costs Equipment costs Pretax salvage value Net working capital Tax rate Required return Year 1 depreciation Year 2 depreciation Year 3 depreciation Year 4 depreciation 2,100,000 2,300,000 2,400,000 125,000 3,600 4,300 5,200 3,900 750 415,000 15% 3,500,000 350,000 125,000 38% 13% 33.33% 44.45% 14.81% 7.41% A A Output area: Aftertax salvage value Sale price Taxes Total Year o Year 1 Year 2 Year 3 Year 4 Revenues Fixed costs Variable costs Depreciation EBT Taxes Net income OCF Capital spending Land Net working capital Total cash flow Discounting Factors DCF Captial Budgeting Indicators - NPV $ IRR Payback Period Discounted Payback Period