Year Van cost including modifications Increase in NOWC Increase in sales Increase in costs Depreciation Earnings Before Tax Tax at 21% Earnings After Tax EBIT (1-T) Add back depreciation EBIT (1-T)+Depreciation After Tax Salvage Value Cash Flow Depreciation rate Depreciation $ Salvage Value Book Value Gain (or Loss) Tax on Gain (or Loss) After Tax Salvage Value 0 2 3 Use the following Section to Determine Cumulative Cash Flows for your Payback Period and Discoun Cash Flow Cumulative CF Cash Flow PV factor 1/(1+0.10)^year Discounted CF Cumulative Discounted CF Cash Flow PV factor 1/(1+0.075)^year