Question: Assuming that the numbers are correct, is this the correct way of including erosion costs in the cash flow projection? Wrap Text General Merge &

Assuming that the numbers are correct, is this the correct way ofAssuming that the numbers are correct, is this the correct way of including erosion costs in the cash flow projection?

Wrap Text General Merge & Center $ % , .000 .00 .0 Insert Delete F Conditional Format as Cell Formatting Table Styles Styles Alignment Number Cells F G H 1 2 K M 0 1 2 3 4 5 Year Operating Cash Flow Quantity Price Revenue Cost per Unit Total Cost of Goods Sold Erosion Costs SG&A Expenses Depreciation 1,500 1,650 1,815 1,997 2,196 S 9,995.00 S 9,995.00 $ 9,995.00 S 9,995.00 S 9,995.00 $ 14,992,500.00 $ 16,491,750.00 $ 18,140,925.00 $ 19,955,017.50 $ 21,950,519.25 S 5,000.00 S 5,000.00 S 5,000.00 S 5,000.00 S 5,000.00 $ 7,500,000.00 $ 8,250,000.00 S 9,075,000.00 $ 9,982,500.00 $ 10,980,750.00 $2,000,000 $2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 3,200,000.00 S 3,200,000.00 $ 3,200,000.00 $ 3,200,000.00 $ 3,200,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 5 2,000,000.00 $ 292,500.00 $ 1,041,750.00 $ 1,865,925.00 S 2,772 7.50 $ 3,769,769.25 $ 87,750.00 $ 312,525.00 S 559,777.50 $ 831,755.255 1,130,930.78 $ 2,204,750.00 S 2,729,225.00 S 3,306,147.50 $ 3,940,762.25 S 4,638,838.48 EBIT Taxes Operating Cash Flow $ (10,000,000.00) $ (449,775.00) S (494,752.50) $ (544,227.75) S Net Investment Capital Investment Operating Capital Investment Salvage Value of Fixed Assets Operating Capital Recapture Tax Impact of Salvage Tax Impact of Operating Capital Recapture (598,650.53) S (658,515.58) $ 3,000,000.00 $ 2,745,921:35 $ (900,000.00) $ Net Investment $ (10,000,000,00) S (449,775.00) S (494,752.50) S (544.227.75) $ (598,650.53) S 4,187,405.78 Project Cash Flow Cummulative Cash Flow $ (10,000,000.00) $ 1,754,975.00 $ 2,234,472.50 $2,761,919.75 $ 3,342,111.73 $ 8,826,244.25 $ (10,000,000,00) $ 18,245,025.00) $ (6,010,552.50) $ (3,248,632.75) S 93,478.98 $ 8,919,723.23 PY Factor 9096 08274 07526 0.6846 0.6227

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