Numbers Fle -Edtad FNC3310,SPR?NG 2018 .capital Budgeting Prioct.S 125 teNumbers in parenthesis mean negative amounts) 1) Life Period of the Equipment 2) New equipment cost 3) Equipment ship & install cost 4) Related start up cost 5) Sales for the first year (year 1) 6) Sales increase per year 4 years 7) Operating cost (60% of Sales) in year 1--$ (200,000)(as a percent of sales) (35,000) 8) Depreciation per year (120,000) 60% (60,000) (5,000) 9) Marginal Corporate Tax Rate 200,000 10) Cost of Capital (WACC) 5% 10 Q1.Please fill the cells below (blue boxes) using the information above CFO CF1 CF2 CF3 CF4 Year- 1) Equipment cost 3) Start up expenses s (200,000) (35,000) S (5,000) 72) Shipping and Install cost Total Initial Investment (1+2+3) S200.000 $ 210,000 s (120,0001$-(126,000) Revenue Operating Cost 251 EBIT s Taxes 2Net Income (NI) Total Operating Cash Flow back Depreciation to NI) 3Project Net Cash Flows Actual0