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Can you please explain this two examples ? How do you calculate the things from line 10-15.

3-year project, capital expenses $250 (year1), $50 (year2), net revenue (EBITDA): $200 (year1), $400 (year2), $200 (year3), cost of capital 15%, income tax rate 40%, initial debt $200, interest rate 10%, IRS depreciation is 2-Year straight-line. Line 3 - YEAR PROJECT Total Initial Year 1 Year 2 Year 3 Cash Flow 7 Net Revenue (EBITDA) 200 400 200 Depreciation 125 150 25 3 Interest Expense 20 20 4 Operating Income before tax 55 230 155 5 Income Taxes 22 92 62 6 Net Income 33 138 93 20 7 8 9 10 11 1.2 13 Net Revenue (EBITDA) Interest Expense Income Taxes Cash flow from operations Capital expenses Debt NET CASH FLOW Present Value Factor PRESENT VALUE OF CASH FLOW 200 20 22 158 (250) 200 20 62 118 400 20 92 288 (50) 800 60 176 564 (300) 0 264 200 200 1.0000 200 (92) 0.8696 (80) 238 0.7561 180 (200) (82) 0.6575 (54) 14 15 $246 NPV 3-year project, capital expenses $250 (years), $50 (year2), net revenue (EBITDA): $200 (years), $400 (year2), $200 (year3), cost of capital 15%, income tax rate 40%, initial debt $200, interest rate 10%, IRS depreciation is 2-Year straight-line. What if customers pay half immediately and half the next year? Line Initial Year 4 Total Cashflow 1 2 3 4 5 Net Revenue (EBITDA) Depreciation Interest Expense Operating Income before tax Income Taxes Net Income 3-YEAR PROJECT Year 1 Year 2 Year 3 200 400 200 125 150 25 20 20 20 55 230 155 22 92 62 33 138 93 6 100 100 20 22 58 (250) 300 20 62 218 2 8 9 10 11 12 13 14 15 Revenue Collections Interest Expense Income Taxes Cash flow from operations Capital expenses Debt NET CASH FLOW Present Value Factor PRESENT VALUE OF CASH FLOW 300 20 92 188 (50) 100 800 60 176 564 (300) o 264 200 200 1.0000 200 (192) 0.8696 (167) 138 0.7561 104 (200) 18 0.6575 12 100 0.5718 57 $149 NPV

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