**Answers MUST be in FORMULA FORM for Excel** Example: ="SUM(B1:C1)" or "=A1+B3"

1 Laurman, Inc. is considering the following project: Required investment in equipment 3 Project life 4 Salvage value 1,750,000 5 years 225,000 2,750,000 1,600,000 1,150,000 $ 6 The project would provide net operating income each year as follows: 7 Sales Variable expenses Contribution margin 10 Fixed expenses: Salaries, rent and other fixed out-of pocket costs Depreciation 13 Total fixed expenses 14 Net operating income 520,000 350,000 870,000 280.000 18% 16 Cost of Capital 17 18 1. Compute the annual net cash inflow from the project