please do it asap

8) Sales for first year (1) s (200,000) 9) Sales increase per year s (35,000) 10) Operating cost (60% of Sales) $ (5,000) (as a percent of sales in Year 1) $ 25,000 11) Depreciation (Straight LineYR S 5,000 12) Marginal Corporate Tax Rate (T) 1) Life Period of the Equipment = 4 years 2) New equipment cost 3) Equipment ship & install cost 4) Related start up cost 5) Inventory increase 6) Accounts Payable increase 7) Equip. salvage value before tax $ 15,000 13) Cost of Capital (Discount Rate) 200,000 5% (120,000) S (60,000) 21% 10% ESTIMATING Initial Outlay (Cash Flow, CFo, T= 0) CF1 CFO CF2 CF3 CF4 Year Investments: 1) Equipment cost 2) Shipping and Install cost 3) Start up expenses Total Basis Cost (1+2+3) 4) Net Working Capital Total Initial Outlay Operations: Revenue Operating Cost Depreciation EBIT es Net Income Add back Depreciation Total Operating Cash Flow XXX Terminal: 1) Change in net WC 2) Salvage value (after tax) Total 20,000 XXXX Salvage Value Before Tax (1-T) Project Net Cash Flows Payback= NPV = IRR = Q#1 Would you accept the project based on NPV, IRR? Would you accept the project based on Payback rule if project cut-off is 3 years? Q#2 Impact of 2017 Tax Cut Act on Net Income, Cash Flows and Capital Budgeting (Investment ) Decisions