We will discuss and analyze the case The Super Project (case and spreadsheets on Courseweb) in Class #5. Please read and understand the case and answer the following questions. A. What is the annual projected cash flow from operations for 1968-1977 inclusive using lines 22-32 of Exhibit 6 assuming

a. Tax rate of 52% b. Depreciation of $12,000 each year embedded in Cost of Goods Sold?

B. Again using Exhibit 6, what is the annual Change in Working Capital for same 10-year period?

C. Please create a table similar to the following one. Check the Include or Exclude box and write a brief rationale justifying your choice about whether to include or exclude the item from a cash flow analysis. There is no suggested length for the rationale, but it has to be persuasive.

Item Include Exclude Rationale

1967 Test Market Expense

Erosion of Jello Profits

Allocation of Overhead

Charge for Using Existing Capacity