A capital budgeting project is being considered for implementation. The cost of the asset, and the first year revenue and operating cost projections are provided in the table below:

Price of Asset	$280,000.00
Freight / Installation	$20,000.00
Depreciation Schedule:
Year 1	$99,000.00
Year 2	$135,000.00
Year 3	$45,000.00
Year 4	$21,000.00
Salvage Value	$30,000.00
Increase in NWC	$25,000.00
Revenues from project	$260,000.00
Operating Costs (excluding depreciation)	$115,000.00
Tax Rate	34%
Required Rate of Return	12%
Opportunity Cost - Sale of plant space	$100,000.00
Expected Annual Growth Project Revenue	4%
Expected Annual increase in operating cost	8%

Using these projections, complete a Project Cash Flow Table like the example from the lecture to calculate the relevant after tax cash flows, and then Calculate the NPV and the IRR for the project. Show your numbers in thousands (200.00 for 200,000, etc)

Year	0	1	2	3	4
Total Revenues		$175.00	175.00	175.00	175.00
Operating Cost (exc. Dep)		(100.00)	(100.00)	(100.00)	(100.00)
Depreciation		(62.70)	(85.50)	(28.50)	(13.30)
Earnings before taxes		12.30	(10.50)	46.50	61.70
Taxes		(4.92)	4.20	(18.60)	(24.68)
Net Income		7.38	(6.30)	27.90	37.02
Depreciation		62.70	85.50	28.50	13.30
Net operating cash flows		70.08	79.20	56.40	50.32
Equipment Cost	(160.00)
Installation	(30.00)
Change in Net Working Capitol	(20.00)
Opportunity Cost	(100.00)				100.00
Salvage Value					40.00
Tax on Salvage Value					(16.00)
Return of NWC					20.00
NET CASH FLOWS	(310.00)	70.08	79.20	56.40	194.32

Be sure to note the expected annual growth in project revenue and operating costs. The estimates for the first year are given, and these amounts should be increased each subseqent year at the respective rates.