THESE QUESTIONS ARE FOR A MANAGERIAL FINANCE CLASS AND I CANNOT FIGURE THEM OUT.

Year 0 Year 1 $ 420,000.00 $ 95,000.00 $ 240,000.00 $ 35,000.00 $ 50,000.00 $ 17,500.00 $ 32,500.00 $ 67,500.00 Revenue Fixed Costs Var. Costs Dep EBT Taxes Net Income OCF Year 2 $ 441,000.00 $ 95,000.00 $ 252,000.00 $ 35,000.00 $ 59,000.00 $ 20,650.00 $ 38,350.00 $ 73,350.00 Year 3 $ 463,050.00 $ 95,000.00 $ 264,600.00 $ 35,000.00 $ 68,450.00 $ 23,957.50 $ 44,492.50 $ 79,492.50 Year 4 $ 486,202.50 $ 95,000.00 $ 277,830.00 $ 35,000.00 $ 78,372.50 $ 27,430.38 $ 50,942.13 $ 85,942.13 Capital Spending $ (175,000.00) NWC $ (35,000.00) Total Cash Flow $ $ (210,000.00) $ 67,500.00 $ 73,350.00 $ NPV $8,695.45 0 100.00 $ 80.00 $ $ $ Truck A Truck B $113.52 $96.39 Initial Investment $ Widgets/year sale price/widget $ cost/widet $ Tax rate discount rate 79,492.50 $ Proj Sales Inc = 5% Year 1 $ Year 2 $ Year 3 $ Year 4 $ Year 5 $ -12000 Year Truck A CFs Truck B CFs Year 5 $ 510,512.63 $ 95,000.00 $ 291,721.50 $ 35,000.00 $ 88,791.13 $ 31,076.89 $ 57,714.23 $ 92,714.23 1 2 10.00 $ 15.00 $ EAC EAC 35,000.00 85,942.13 $ 127,714.23 Sales 7,500.00 Prod. Costs 7,875.00 8,268.75 8,682.19 9,116.30 3 10.00 $ 15.00 10.00 $45.65 $38.76 $115.78 $98.76 EAC EAC 12,000.00 1600 4.50 2.00 0.34 0.14 Year 0 Year 1 $ 7,200.00 $ 3,200.00 $ 2,400.00 $ 1,600.00 $ 544.00 $ 1,056.00 $ 3,456.00 Revenue Prod. Costs Dep EBT Taxes Net Income OCF Capital Spending NWC $ (12,000.00) $ NPV $ Year 2 $ 7,200.00 $ 3,200.00 $ 2,400.00 $ 1,600.00 $ 544.00 $ 1,056.00 $ 3,456.00 Year 3 $ 7,200.00 $ 3,200.00 $ 2,400.00 $ 1,600.00 $ 544.00 $ 1,056.00 $ 3,456.00 Year 4 $ 7,200.00 $ 3,200.00 $ 2,400.00 $ 1,600.00 $ 544.00 $ 1,056.00 $ 3,456.00 Year 5 $ 7,200.00 $ 3,200.00 $ 2,400.00 $ 1,600.00 $ 544.00 $ 1,056.00 $ 3,456.00 $ (12,000.00) Total Cash Flow (135.27) 3,456.00 $ 56 32 3,456.00 $ 3,456.00 $ 3,456.00 $ 3,456.00 $46.55 $39.71