Inputs $01234$

Three Year MACRS $0\mathrm{.}33330\mathrm{.}44450\mathrm{.}14810\mathrm{.}0741$

Unit Sales $$3,200$ $$4,300$ $$3,900$ $$2,800$

Price $$780$ $$780$ $$780$ $$780$

Sales $$2,496,000\mathrm{.}00$ $$3,354,000\mathrm{.}00$ $$3,042,000\mathrm{.}00$ $$2,184,000\mathrm{.}00$

Fixed Cost $$425,000$ $$425,000$ $$425,000$ $$425,000$

Variable Cost $(15\%$ of sales$)$ $$374,400\mathrm{.}00$ $$503,100\mathrm{.}00$ $$456,300\mathrm{.}00$ $$327,600\mathrm{.}00$

Depreciation $$1,399,860\mathrm{.}00$ $$1,866,900\mathrm{.}00$ $$622,020\mathrm{.}00$ $$311,220\mathrm{.}00$

EBT $($Sales $-($Fixed $+$ Variable $+$ Depreciation$))$ $$296,740\mathrm{.}00$ $$559,000\mathrm{.}00$ $$1,538,680\mathrm{.}00$ $$1,120,180\mathrm{.}00$

Tax @ $38\%$ of EBT $$112,761\mathrm{.}20$ $$212,420\mathrm{.}00$ $$584,698\mathrm{.}40$ $$425,668\mathrm{.}40$

Net Income $($EBT$-$Tax$)$ $$183,978\mathrm{.}80$ $$346,580\mathrm{.}00$ $$953,981\mathrm{.}60$ $$694,511\mathrm{.}60$

Depreciation $$1,399,860\mathrm{.}00$ $$1,866,900\mathrm{.}00$ $$622,020\mathrm{.}00$ $$311,220\mathrm{.}00$

OCF $0$ $$1,583,838\mathrm{.}80$ $$2,213,480\mathrm{.}00$ $$1,576,001\mathrm{.}60$ $$1,005,731\mathrm{.}60$

Capital Spending $-4,200,000248,000$

Land $-1,500,0001,600,000$

Net Working Capital $-125,000125,000$

Total Cash Flow $-5,825,000$ $$1,583,838\mathrm{.}80$ $$2,213,480\mathrm{.}00$ $$1,576,001\mathrm{.}60$ $$2,978,731\mathrm{.}60$

Net Present Value $$229,266\mathrm{.}82$

IRR $14\mathrm{.}73\%$ Discount Rate $13\%$

Profitibility Index $0\mathrm{.}73$

Solve for the Profitibility Index and Payback Period