New Equipment (100,000) Capital Investment (40,000) Revneue $180,000 $315,000 $450,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 Production, Administration and Sales cost per unit $25 (100,000) (175,000) (250,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) Other Cost Salaries, Insurance, Maintenace (120,000) (120,000) (120,000) (120,000) (120,000) (120,000) (120,000) (120,000) (120,000) (120,000) (120,000) (120,000) Advertising (70,000) (70,000) (50,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) Salvage Value 10,000 Pretax Net Cash Inflow (outflow) (140,000) ($110,000) ($50,000) $30,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $90,000 Depreciation (7,500) (7,500) (7,500) (7,500) (7,500) (7,500) (7,500) (7,500) (7,500) (7,500) (7,500) (7,500) Taxable Income ($117,500) ($57,500) $22,500 $72,500 $72,500 $72,500 $72,500 $72,500 $72,500 $72,500 $72,500 $82,500 Income Tax Payable ($23,500) ($11,500) $4,500 $14,500 $14,500 $14,500 $14,500 $14,500 $14,500 $14,500 $14,500 $16,500 Net Cash Inflow(Outflow) (140,000) ($86,500) ($38,500) $25,500 $65,500 $65,500 $65,500 $65,500 $65,500 $65,500 $65,500 $65,500 $90,000 Net Present Value (68,520.50)