Create a cashflow statement (table) with the following information: Purchase equipment for $10,000, depreciable using MACRS

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Question:

Create a cashflow statement (table) with the following information:

• Purchase equipment for $10,000, depreciable using MACRS 7-year recovery period.
• Sales price per unit $15/unit
• Material costs per unit is $2/unit
• Labor costs per unit is $8/unit
• Rent of the space is $18,000/year
- Insurance per year is $1000
- Supervisor Salary is $50,000 per year
• Estimated sales volume is 15000/year and will increase at 5% per year
• You estimate that at the end of the 5 years you will be able to sell the equipment for $5000
• Tax rate is 28%

You should have a calculation for sale of the equipment: salvage cost, book value, gains, taxes, cashflow of the sale.