A B 0 D 42 Part 3. Projected Net Cash Flows (Time line of annual cash flows) E F G H 43 44 Years 0 1 2 3 4 45 Investment Outlays at Time Zero: 46 Equipment $ 25,000,000 47 48 Operating Cash Flows over the Project's Life: 49 Units sold 50 Sales price per unit 51 Variable costs per unit 52 53 Sales revenue 54 Variable costs 55 Non-variable operating costs 56 Depreciation (equipment) 57 Oper. income before taxes (EBIT) 58 Taxes on operating income 59 Net Operating Profit After Taxes (NOPAT) 60 Add back depreciation Operating cash flow 61 62 63 Working Capital: 64 Required level of net operating working capital 65 Required investment in NOWC 66 67 Terminal Year Cash Flows: 68 Net salvage value 69 70 Net Cash Flow (Time line of cash flows) 71 72 Part 4. Key Output: Appraisal of the Proposed Project 73 74 Net Present Value 75 IRR 76 MIRR 77 78 Payback (See calculation below) 79 80 Data for Payback Years 81 82 83 ($2,520,000) 3,500 $3,600.00 3,500 3,500 3,500 $1,100.00 $12,600,000 3,850,000 800,000 Net cash flow Cumulative CF Part of year required for payback: 0.00 0.00 0.00 0.00