Years 1-12 Year 0 - $5,400,000 Investment 1. Sales 2. Variable costs 3. Fixed costs 4. Depreciation 5. Pre-tax profit (1-2-3-4) 6. Taxes (at 40%) 7. Profit after tax 8. Cash flow from operations (4 + 7) Net cash flow $ 16,000,000 13,000,000 2,000,000 450,000 550,000 220,000 330,000 780,000 -$5,400,000 780,000 Recalculate cash flow as shown from above table if variable costs are 83 percent of sales. Confirm that NPV will be - $788,000 taking 12 years annuity factor and cost of capital as 8%. (12 years annuity factor as per annuity table for 8% is 7.536)