Q$2)$ Use the information in part B of the table to fill lines $3$ to $5.$ Here, capital replacement should be

adjusted for inflation.

Q$3)$ Use the information in part $C$ of the table to fill lines $6$ to $8$ of column $C.$ Then, complete the rest of

the column, keeping in mind that operating receipts and expenses need to be adjusted for inflation, but

depreciations do not.

Q$4)$ Complete lines $9$ and $10.$ Remember that taxable income does not include capital purchases, sales,

or replacements.

Q$5)$ Calculate the net cash flow and the discounted net cash flow line

Q$6)$ What is the NPV of the expansion project?