Part 3. Projected Net Cash Flows (Time line of annual cash flows) Years 0 1 Investment Outlays at Time Zero: Equipment Operating Cash Flows over the Project's Life: Units sold Sales price Variable costs Sales revenue Variable costs Non-variable operating costs Depreciation (equipment) Oper. income before taxes (EBIT) Taxes on operating income (40%) Net Operating Profit After Taxes (NOPAT) Add back depreciation Operating cash flow Net Working Capital: Required level of net operating working capital Required investment in NOWC Terminal Year Cash Flows: Net salvage value Net Cash Flow (Time line of cash flows) Part 3. Projected Net Cash Flows (Time line of annual cash flows) Years 0 1 Investment Outlays at Time Zero: Equipment Operating Cash Flows over the Project's Life: Units sold Sales price Variable costs Sales revenue Variable costs Non-variable operating costs Depreciation (equipment) Oper. income before taxes (EBIT) Taxes on operating income (40%) Net Operating Profit After Taxes (NOPAT) Add back depreciation Operating cash flow Net Working Capital: Required level of net operating working capital Required investment in NOWC Terminal Year Cash Flows: Net salvage value Net Cash Flow (Time line of cash flows)