PLEASE USING THIS INFORMATION FILL OUT ALL COLUMNS COMPLETELY IN THE TABLE MARKED AS (*******) 1) Life Period...

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Finance

PLEASE USING THIS INFORMATION FILL OUT ALLCOLUMNS COMPLETELY IN THE TABLE MARKED AS(*****)
1) Life Period of the Equipment = 4years 8) Sales for first year (1) $    200,000
2) New equipment cost $       (200,000) 9) Sales increase per year 5%
3) Equipment ship & installcost $         (35,000) 10) Operating cost: $   (120,000)
4) Related start up cost $            (5,000)     (60 Percent ofSales) -60%
5) Inventory increase $           25,000 11) Depreciation (StraightLine)/YR $     (60,000)
6) Accounts Payable increase $             5,000 12) Tax rate 35%
7) Equip. Salvage ValueEstimated $           15,000 13) Cost of Capital (WACC) 10%
End of Year 4 (fully depreciated )
ESTIMATING Initial Outlay (Cash Flow, CFo,T= 0)
YEAR CF0 CF1 CF2 CF3 CF4
0 1 2 3 4
Investments:
1) Equipment cost * * *
2) Shipping and Install cost * * *
3) Start up expenses * * *
    Total Basis Cost (1+2+3)
4) Net Working Capital * * * **
Inventory Inc.- Acct. Payable Inc. $         (20,000) $         -   $         -   $          -   $              -
     Total Initial Outlay * *****

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PLEASE USING THIS INFORMATION FILL OUT ALLCOLUMNS COMPLETELY IN THE TABLE MARKED AS(*******)1) Life Period of the Equipment = 4years8) Sales for first year (1)$ 200,0002) New equipment cost$ (200,000)9) Sales increase per year5%3) Equipment ship & installcost$ (35,000)10) Operating cost:$ (120,000)4) Related start up cost$ (5,000) (60 Percent ofSales)-60%5) Inventory increase$ 25,00011) Depreciation (StraightLine)/YR$ (60,000)6) Accounts Payable increase$ 5,00012) Tax rate35%7) Equip. Salvage ValueEstimated$ 15,00013) Cost of Capital (WACC)10%End of Year 4(fully depreciated )ESTIMATING Initial Outlay (Cash Flow, CFo,T= 0)YEARCF0CF1CF2CF3CF401234Investments:1) Equipment cost***********************2) Shipping and Install cost******************* ******3) Start up expenses************************* Total Basis Cost (1+2+3)4) Net Working Capital*************************Inventory Inc.- Acct. Payable Inc.$ (20,000)$ - $ - $ - $ - Total Initial Outlay****************************

1) Life Period of the Equipment = 4years			8) Sales for first year (1)			$ 200,000
2) New equipment cost		$ (200,000)	9) Sales increase per year			5%
3) Equipment ship & installcost		$ (35,000)	10) Operating cost:			$ (120,000)
4) Related start up cost		$ (5,000)	(60 Percent ofSales)		-60%
5) Inventory increase		$ 25,000	11) Depreciation (StraightLine)/YR			$ (60,000)
6) Accounts Payable increase		$ 5,000	12) Tax rate			35%
7) Equip. Salvage ValueEstimated		$ 15,000	13) Cost of Capital (WACC)			10%
End of Year 4	(fully depreciated )
ESTIMATING Initial Outlay (Cash Flow, CFo,T= 0)
YEAR		CF0	CF1	CF2	CF3	CF4
		0	1	2	3	4
Investments:
1) Equipment cost		*****	****	*****	****	*****
2) Shipping and Install cost		*****	****	*****	*****	******
3) Start up expenses		******	****	*****	*****	*****
Total Basis Cost (1+2+3)
4) Net Working Capital		*****	****	*****	*****	******
Inventory Inc.- Acct. Payable Inc.		$ (20,000)	$ -	$ -	$ -	$ -
Total Initial Outlay		****	*****	******	******	*******