Head Year 0 Years 1-12 Investment $5,400,000 1. Sales $ 16,000,000 2. Variable costs 13,000,000 3. Fixed costs 2,000,000 4 Depreciation 450,000 5. Pre-tax profit (1 - 2 - 3 - 4) 550.000 6. Taxes (at 40%) 220,000 7. Profit after tax 330,000 8. Cash flow from operations (4 + 7) 780,000 Net cash flow -55,400,000 780,000 Recalculate cash flow as shown from above table if variable costs are 83 percent of sales Confirm that NPV will be - $788,000 with a cost of capital of 8% and the annuity 12 years factor is 7.536