ABCDEFGHIJKLMNOPQRSTUVWXYZ
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Unit price$4.50
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Annual unit sales35,000
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Variable cost per unit
$1.60
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Investment in fixed capital
$320,000
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Investment in working capital
$50,000
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Project life (years)
6
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Depreciation (straight-line)
$53,333
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Expected salvage value
$40,000
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Tax rate40%
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Required rate of return
13%
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123456
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Revenue$157,500.00$157,500.00$157,500.00$157,500.00$157,500.00$157,500.00
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 Unit price$4.50$4.50$4.50$4.50$4.50$4.50
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Annual unit sales
35,00035,00035,00035,00035,00035,000
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- COGS$56,000.00$56,000.00$56,000.00$56,000.00$56,000.00$56,000.00
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Variable cost per unit
$1.60$1.60$1.60$1.60$1.60$1.60
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- Depreciation$53,333$53,333$53,333$53,333$53,333$53,333
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EBIT$48,166.67$48,166.67$48,166.67$48,166.67$48,166.67$48,166.67
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- Taxes$19,266.67$19,266.67$19,266.67$19,266.67$19,266.67$19,266.67
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Net Income$28,900.00$28,900.00$28,900.00$28,900.00$28,900.00$28,900.00
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+ Depreciation$53,333$53,333$53,333$53,333$53,333$53,333
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Cash Flow$82,233.33$82,233.33$82,233.33$82,233.33$82,233.33$82,233.33
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Salvage $40,000
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- Taxes$16,000
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Net Salvage Value
$24,000
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NOWC$50,000
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Terminal Value$74,000
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Cash Flow + TV$82,233.33$82,233.33$82,233.33$82,233.33$82,233.33$156,233.33
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NPV-$5,724.58
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