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MACRS Schedule 3-year 5- year \begin{tabular}{rrcccccc} Year 1 & Year 2 & Year 3 & Year 4 & Year 5 & Year 6 & Year 7 & Year 8 \\ \hline 33.33% & 44.45% & 14.81% & 7.41% & & & \\ 20.00% & 32.00% & 19.20% & 11.52% & 11.52% & 5.76% & \\ 14.29% & 24.49% & 17.49% & 12.49% & 8.93% & 8.92% & 8.93% & 4.46% \end{tabular} Pro Forma Income Statements Year \begin{tabular}{lllll} 1 & 2 & 4 & 5 \\ \hline \end{tabular} Revenues Variable costs Fixed costs Depreciation EBIT Taxes(21%) Net income OCF Net Working Capital Year 0 01 2 3 Initial NWC Ending NWC NWC cash flow Salvage Value Market value of salvage Book value of salvage Taxes on sale: Aftertax salvage value: Project Cash Flows Year OCF Change in NWC Capital spending Total cash flow Cumulative cash flow Payback calculation Discounted cash flows Cumulative discounted cash flow Discounted payback calculation MACRS Schedule 3-year 5- year \begin{tabular}{rrcccccc} Year 1 & Year 2 & Year 3 & Year 4 & Year 5 & Year 6 & Year 7 & Year 8 \\ \hline 33.33% & 44.45% & 14.81% & 7.41% & & & \\ 20.00% & 32.00% & 19.20% & 11.52% & 11.52% & 5.76% & \\ 14.29% & 24.49% & 17.49% & 12.49% & 8.93% & 8.92% & 8.93% & 4.46% \end{tabular} Pro Forma Income Statements Year \begin{tabular}{lllll} 1 & 2 & 4 & 5 \\ \hline \end{tabular} Revenues Variable costs Fixed costs Depreciation EBIT Taxes(21%) Net income OCF Net Working Capital Year 0 01 2 3 Initial NWC Ending NWC NWC cash flow Salvage Value Market value of salvage Book value of salvage Taxes on sale: Aftertax salvage value: Project Cash Flows Year OCF Change in NWC Capital spending Total cash flow Cumulative cash flow Payback calculation Discounted cash flows Cumulative discounted cash flow Discounted payback calculation
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