What yearly cash flows are relevant for this investment decision? Do not forget the effect of taxes and the initial investment amount. Complete the table below using the detail summarized below:

Investment:

Initial Investment - $16M 2016, $2M 2017

Working Capital - 10% of Incremental Sales

Operating Savings - $2M 2017, $3.5M 2018-2022

Sales Revenue - $4M 20017, $10M 2018-2022

Expenses - CGS 75% of Revenue, SG&A - 5% of Revenue

Salvage:

Working Capital - recoverable at cost

Initial Investment - 10% or $1.8M before tax, $1.08M after taxes

Depreciation Straight Line over 6 years, no salvage, start in 2017

Am I on the right track or way off?

2016 16.00 16.00 2017 2018 2019 2020 2021 2022 2.00$- $-$$ $ Irrrestment Capital Outay Net Working Capital (10% Sales) Total Irestment Lvestment Reco 2.00 $0.40$1.00 $100 $1.00 $1.00 $1.00 $0.40 1.00 100 1.00 100 $ 100 Equipment Sahrage Net Working Capital (full recove 1.8 $0.40 $1.00 $100 $1.00 $1.00 $1.00 Earnings before Intet and Taxes (EB Sales Revernue $4 10 10 10 10 10 Cost of Goods Sold (75% Sales) SG&A (5% Sales) Operating Savings Depreciation 18.000/6) Total Costs & Expenses $3.00$7.507.50$7.50 $7.50 7.50 $0.20$0.50050$0.50 $0.50 $0.50 $2 $3.50 $3.50 $3.50 $3.50 $3.50 $ 3.00 3.00 3.00 3.003.00 3.00 $3.20$8.00 $8.00 $8.00 $8.00 8.00 EBIT $10 $400 $4.00 40 $400 $4.00 $2.40 $6.00 $6.00 $6.00 $6.00$6.00 $ 3.00 3.00 3.00 3.003.00 3.00 $4 $1.60 $10 $10 $10 $10 -Taxes (40%) NOPAT epreciation Iestment Free Cash Flow $5.00 $8.00 $8.00 $8.00 $8.00$8.00 $45.00