Background:

You are a financial analyst working for the Satcom Division of Global Telecomm, Inc. $($GTI$)$ GTI specializes in providing ultrahigh broadband telecommunication service infrastructure to a variety of commercial and private companies. GTI provides these services in the Americas as well as Europe and the Far East. Key to its services is a network of servers, relay nodes and towers, and access to certain commercial satellite service providers. The latter is required to enable transatlantic and transpacific near real time communication services using ultrahigh frequency transceivers. GTI home offices are in Petaluma, California. GTI has $2$ other operating divisions: Telecomm and GTI Properties.

The Satcom Division handles the trans$-$ocean satellite services for GTI. GTI Properties is responsible for acquisition and management of the various properties owned and leased by GTI. The Telecomm Division is responsible for system servers and access$/$distribution equipment for land$-$based services.

GTI has an ongoing business relationship with Morgan Stanley for investment banking services, Bank of America and Citi Corp for its banking and lines of credit. In addition, GTI does business with Barclays $($London$)$ and Sumitomo Bank, LTD$.($Tokyo$).$ The last two facilitate the sale of intermediate term notes and long$-$term bonds in Europe and the Far East, respectively. GTI provides system services to its clients on a $5-$ or $7-$year contract basis. A small percentage of GTI$$s accounts are on a year$-$to$-$year contract basis.

The Numbers:

Satcom$$s fiscal year ends December $31.$ The Satcom Division predicts it will generate $$2\mathrm{.}0$ Billion in sales and $$450$ million in profits in FY $2013.$ The divisional cost of capital is $14\%$ and its average tax rate is $35\%.$ The cost of sales for the Satcom Division has historically run about $45\%.$

Planning to add additional capacity began in $2012.$ The corporate economist provided a forecast of the incremental sales and the expected cost of sales for Fiscal Years $2013$ through $2019.$ The additional new equipment will cost $$750$ Million $($installed$)$ and will require a $$75$ Million investment in working capital $($primarily cash$)$ and technical support contracts. We expect to recoup $$25$ million of the $$75$ million at the end of year $2019.($Working Capital $$ Cash$).$

Sales Forecasts for Years $2013$ through $2019$

The timeline for this project was as follows: $(1)$ Investment Analysis $($Jan$-$Mar $2012),(2)$ Equipment acquisition $($July$-$October, $2012).(3)$ Site Preparation and Installation $($August$-$October, $2012).(4)$ System Calibration and Testing $($November$-$December, $2012).(5)$ Start of contract services January $1,2013($FY $2013).$

Project #$2$: $($Reminder: $5$ points maximum added to your final point count.$)$

$1.$ Complete the base case Depreciation and After$-$Tax Cash Flow tables.