Question: 1. Year 2 3 4 5 6 7 8 9 10 Sales $ 15,000,000 $ 17,250,000 $ 18,975,000 $ 20,872,500 $ 22,959,750 $ 24,107,738 $

1. Year 2 3 4 5 6 7 8 9 10 Sales $ 15,000,000 $
1. Year 2 3 4 5 6 7 8 9 10 Sales $ 15,000,000 $ 17,250,000 $ 18,975,000 $ 20,872,500 $ 22,959,750 $ 24,107,738 $ 25,313,124 |$ 26,578,781 $ 27,907,720 $ 29,303,106 - Operating Expenses $ 7,500,000 $ 8,625,000 $ 9,487,500 $ 10,436,250 $ 11,479,875 $ 12,053,869 $ 12,656,562 $ 13,289,390 $ 13,953,860 $ 14,651,553 Depreciation $ 10,288,800 $ 17,632,800 $ 12,592,800 $ 8,992,800 $ 6,429,600 $ 6,422,400 $ 6,429,600 $ 3,211,200 S S $ 72,000,000 EBIT $ (2,788,800) $ (9,007,800) $ (3,105,300) $ 1,443,450 $ 5,050,275 $ 5,631,469 $ 6,226,962 $ 10,078,190 $ 13,953,860 $ 14,651,553 - Taxes $ (697,200) $ (2,251,950) $ (776,325) 360,863 $ 1,262,569 $ 1,407,867 $ 1,556,741 $ 2,519,548 $ 3,488,465 $ 3,662,888 Net Income $ (2,091,600) $ (6,755,850) |$ (2,328,975) $ 1,082,588 $ 3,787,706 $ 4,223,602 $ 4,670,222 $ 7,558,643 $ 10,465,395 $ 10,988,665 + Depreciation $ 10,288,800 $ 17,632,800 $ 12,592,800 $ 8,992,800 $ 6,429,600 $ 6,422,400 $ 6,429,600 $ 3,211,200 S S Cash Flow $ 8,197,200 $ 10,876,950 $ 10,263,825 $ 10,075,388 $ 10,217,306 $ 10,646,002 $ 11,099,822 $ 10,769,843 $ 10,465,395 $ 10,988,665 Initial Cost $ 72,000,000 MACRS 7 Year Depreciation 14.29% 24.49% 17,49% 12.49% 8.93% 8.92% 8.93% 4.46%

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