Question: Home Insert A Page Layout B Formulas Data Review View C D E F G H I J 1 Year 1 2 3 4

Home Insert A Page Layout B Formulas Data Review View C DE F G H I J 1 Year 1 2 3 4

Home Insert A Page Layout B Formulas Data Review View C D E F G H I J 1 Year 1 2 3 4 5 6 7 8 9 2 Projected Revenue $90,000 $120,000 $125,000 $85,000 $150,000 $210,000 $130,000 $140,000 $190,000 Home Insert Page Layout A Formulas Data Review View B C 1 2 Initial cost of machines 3 Useful life from acquisition date (years) 4 Old Machine New Machine $180,000 $225,000 5 Terminal disposal value at the end of useful life on Dec. 31, 2021 (for depreciation purposes) $ 13,500 $ 20,000 Variable cost per serving 8 Depreciation method for tax purposes Estimated disposal value of machines: January 1, 2017 9 10 11 December 31, 2021 12 Expected servings made and served 5 Expected annual cash operating costs: 6 7 Total fixed costs $ 0.50 $ 0.40 $ 12,000 Straight line $ 75,000 $ 10,000 240,000 $ 8,000 Straight line $225,000 $ 18,000 240,000

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