Show excel functions 11. Calculating Project cash Flow from Assets [LO1] in the previous problem, suppose the projecct
requires an initial investment in net working capital of $300,000, and the fixed asset will
have a market value of $210,000 at the end of the project. What is the project's Year 0 net cash flow?
Year 1? Year 2? Year 3? What is the new NPV?

A D Year 0 Year Year 3 Year 2 1478 Particulars -$2,900,000.00 1479 Initial cost $2,190,000.00 $2,190,000.00 S2,190,000.00| S815,000.00 S815,000.00| $966,666.67 $966,666.67 $408,333.33 S408,333.33 $142,916.67 S142,916.67| $265,416.67 S265,416.67| $966,666.67 $966,666.67 -S2,900,000.00 $1,232,083.33| S1,232,083.33|$1,232,083.33| 1480 Annual sales $815,000.00 $966,666.67 $408,333.33 $142,916.67 $265,416.67 $966,666.67 1481 Cost 1482 Depreciation 1483 EBIT 1484 Tax @35% 1485 Net income 1486 Depreciation 1487 Operating cash flows Net present value @12% $59,256.28 1488 1489 IRR 13.19% B A C D Year 0 Year 1 Year 2 Year 3 1478 Particulars 1479 Initial cost =-2.9 1000000 2190000 815000 --SB$1479/3 -C1480-C1481-C1482D1480-D1481-D1482 -C1483 35 % 2190000 2190000 815000 1480 Anmual sales 815000 --$B$1479/3 1481 Cost 1482 Depreciation -$B$1479/3 1483 EBIT -E1480-E1481-E1482 1484 Tax @35% =D1483 35% - E1483 35 % 1485 Net income -C1483-C1484 =D1483- D1484 D1482 -D1485+D1486 -NPV (12 % , C1 487:E1487)+B 1487 IRR(B1487:E1487) -E1483- E1484 1486 Depreciation 1487 Operating cash flows -C 1482 =E1482 -B1479 -C1485+C1486 -E1485+E1486 1488 Net present value @12% IRR 1489