Part 1 Investments: New equipment Cost: $200,000. Equipment Ship & install cost: $35,000. Related Start up Cost: $5,000. Net Working Capital: $20,000. $750,000 Total Initial Outlay: $260,000 Operations: Revenue: $200,000 Operating Cost: $120,000 Depreciation: $60,000 EBIT: $20,000 Taxes @ 35%: $7,000 Net income: $13,000. Add back Deprecition: $60,000 Total Operating Cashflow: $73,000