Profit & loss statement 2 3 Revenue 18,000,000 18,450,000 18,911,250 BHP cost (6,333,333.33) (6,333,333.33) (6,333,333.33) Existing (6,200,000) (6,200,000) (6,200,000) facilities cost Taxable 5,466,666.67 5,916,666.67 6,377.916.67 Income Tax pald (30%%) (1,640,000) (1,775,000) (1,913,375) Cash flow 2 3 statement Tax (1,640,000) (1,775,000) (1,913,375) Revenue 18,000,000 18,450,000 18,911,250 Initial BHP (6,000,00 0) BHP cost (6,333,333.33) (6,333,333.33) (6,333,333.33) Existing (6,200,000) (6,200,000) (6,200,000) facilities cost Net cash flows (6,000,000) 3,826.666.67 4,141.666.67 4.464.541.67 WACC 4.217 NPV $5,430,572.93