Year MACRS Percent Depreciation Book Value 1 .1429 .1429(110,000) = 15,719 110,000 - 15,719 = 94,281 2 .2449 .2449(110,000) = 26,939 94,281 - 26,939 = 67,342 3 .1749 .1749(110,000) = 19,239 67,342 - 19,239 = 48,103 4 .1249 .1249(110,000) = 13,739 48,103 - 13,739 = 34,364 5 .0893 .0893(110,000) = 9,823 34,364 - 9,823 = 24,541 6 .0893 .0893(110,000) = 9,823 24,541 - 9,823 = 14,718 = After-tax salvage = 17,000 - .4(17,000 14,718) = 16,087.20 Evaluate "The Ultimate" tennis racket project Show all work including: Depreciation schedule with Book Value each year After-tax value of equipment Pro Forma Income Statements >Changes in Net Working Capital each year Project Cash Flows NPV calculations Year MACRS Percent Depreciation Book Value 1 .1429 .1429(110,000) = 15,719 110,000 - 15,719 = 94,281 2 .2449 .2449(110,000) = 26,939 94,281 - 26,939 = 67,342 3 .1749 .1749(110,000) = 19,239 67,342 - 19,239 = 48,103 4 .1249 .1249(110,000) = 13,739 48,103 - 13,739 = 34,364 5 .0893 .0893(110,000) = 9,823 34,364 - 9,823 = 24,541 6 .0893 .0893(110,000) = 9,823 24,541 - 9,823 = 14,718 = After-tax salvage = 17,000 - .4(17,000 14,718) = 16,087.20 Evaluate "The Ultimate" tennis racket project Show all work including: Depreciation schedule with Book Value each year After-tax value of equipment Pro Forma Income Statements >Changes in Net Working Capital each year Project Cash Flows NPV calculations