Old machine

-Annual sales

200,000 fresh juice

20,000 canned soft drink

15 000 packed flavour milk

-it can be sold for 55 000

-operating fee 75 000

-machine life remain 2 years / after two year, it can be sold for 2000

(depreciated down to zero using the straight-line method)

-bought 3 years ago with 5 years depreciation 200 000

New machine

-annual sales

250 000 fresh juice

100 000 (year 1), 120 000 (year 2) increased by 5% smoothies

Cease sales of soft drink and flavour milk

-need tool ($8000) but I have $3000 tool already

-operating fee 80 000 and will increase by 1%

-working capital $20 000 and total net working capital will be about 20% of sales for that year

-machine life is for 4 year after 4 year, it can be sold $70 000 / 4 years depreciation

-I have a one tenant who pays $3000 per year with 2% increase per year but for the new machine, I recommend to leave

I borrow $200 000 6.3 per annum interest only payment

End of the four years will repay the principle of 200 000

Inflation 3% tax rate 30%

I want to know the A pro forma income statement for the project