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Table 2 Initial Equipment $61,000 Project Life 3 Years Sales $55,000 Variable Costs $25,000 Fixed Costs $10,000 Tax rate 28% Cost of Capital 10% Ending

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Table 2 Initial Equipment $61,000 Project Life 3 Years Sales $55,000 Variable Costs $25,000 Fixed Costs $10,000 Tax rate 28% Cost of Capital 10% Ending Book Value $10,000 Sales Price at Year 3 $5,000 Net Working Capital $10,000 15. Calculate the initial cost. 16. Calculate the operating cash flow (OCF). 17. Calculate the terminal non-operating cash flow (TNOCF) 18. Calculate the NPV

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