PLEASE USING THIS INFORMATION FILL OUT THE COLUMNS IN THE TABLE MARKED AS (*******)

1) Life Period of the Equipment = 4 years				8) Sales for first year (1)			$ 200,000
2) New equipment cost			$ (200,000)	9) Sales increase per year			5%
3) Equipment ship & install cost			$ (35,000)	10) Operating cost:			$ (120,000)
4) Related start up cost			$ (5,000)	(60 Percent of Sales)		-60%
5) Inventory increase			$ 25,000	11) Depreciation (Straight Line)/YR			$ (60,000)
6) Accounts Payable increase			$ 5,000	12) Tax rate			35%
7) Equip. Salvage Value Estimated			$ 15,000	13) Cost of Capital (WACC)			10%
End of Year 4	(fully depreciated )
ESTIMATING Initial Outlay (Cash Flow, CFo, T= 0)
YEAR			CF0	CF1	CF2	CF3	CF4
			0	1	2	3	4
Investments:
1) Equipment cost			*****	****	*****	****	*****
2) Shipping and Install cost			*****	****	*****	*****	******
3) Start up expenses			******	****	*****	*****	*****
Total Basis Cost (1+2+3)
4) Net Working Capital			*****	****	*****	*****	******
Inventory Inc.- Acct. Payable Inc.			$ (20,000)	$ -	$ -	$ -	$ -
Total Initial Outlay			****	*****	******	******	*******