What would the tax be on negative earnings before tax? Would you apply the marginal tax rate to the negative number or would the tax be zero?

All I need is the equation for the earnings before tax on year 1.

The marginal Tax Rate is 33%

S $ S Economic life of project in years. Price of New Equipment Change in NWC Fixed Costs Variable Costs (% of Revenue) Salvage value of New Equipment Marginal Tax Rate First Year Unit Sales Sales Growth Rate Unit Sale Price First Year Revenue 4 933,000.00 120,710.00 259,830.00 9% 122,311.00 33.0% 4900 17.00% S S S 80.00 343,000.00 Cells G38-G40 contain the terminal cash flows. 1 2 0 3 $ S (933,000.00) (120,710.00) S S 4900 80.00 392,000.00 $ Spreadsheet for determining Cash Flows Timeline: Year II. Net Investment Outlay = Initial CFs Price of Equipment Change in NWC III. Cash Flows from Operations Revenue Generation Unit Sales Unit Sale Price Revenues Costs Variable Costs Fixed Costs Depreciation Earnings Before Taxes Taxes Net Income Depreciation Net operating CFS IV. Terminal Cash Flows Salvage Value Tax on Salvage Value Return of NWC V. Final Cash Flow Cash Flows Present Value of CFs luul (30,870.00) (259,830.00) (233,250.00) (131,950.00) $ S $ (1.053,710.00) (1,053,710.00) NPV of Project