a). Complete the spreadsheet below by estimating the project's annual after tax cash flow.

Facts and Assumptions
Equipment initial cost $	$350,000
Depreciable life yrs.	7
Expected life yrs.	10
Salvage value $	$0
Straight line depreciation
EBIT in year 1	28,000
Tax rate	38%
Growth rate in EBIT	3%
Discount rate	10%

Year	0	1	2	3	4	5	6	7	8	9	10
Initial cost	350,000
Annual depreciation		50,000	50,000	50,000	50,000	50,000	50,000	50,000
EBIT		28,000	28,840	29,705	30,596	31,514	32,460	33,433	34,436	35,470	36,534

Net present value @ 10%

Internal rate of return