INPUT

Depreciation $ 20,000 Tax 34%

Selling price $ 20
Pro. Cost $ 10
Year 0 1 2 3
Initial Investment
Machine cost $ (100,000)
Opp. cost (Land) $ (150,000)
NWC requirement $ (10,000)
Total $ (260,000)

Terminal CFs
Salvage value
Recover (Land)

Operating CFs
Sales units 5,000 8,000 12,000
Sales Rev. $ 100,000 $ 160,000 $ 240,000
Production cost $ 50,000 $ 80,000 $ 120,000
EBITDA $ 50,000 $ 80,000 $ 120,000
Operating CFs $ 39,800 $ 59,600 $ 86,000

Requirement in NWC $ 10,000 $ 16,000 $ 24,000 $ 20,000

Change in NWC $ (6,000) $ (8,000) $ 4,000

Total CFs $ (260,000) $ 33,800 $ 51,600 $ 90,000

 4 5

$ 19,800
$ 150,000

10,000 6,000
$ 200,000 $ 120,000
$ 100,000 $ 60,000
$ 100,000 $ 60,000
$ 72,800 $ 46,400

$ 12,000 $ -
$ 8,000 $ 12,000

$ 80,800 $ 228,200