Put together a Cash Flow Estimation and Analysis for this expansion project:

Equipment required: $$1,000,000$

Inventory will increase by $$180,000$ and Accounts Payable will increase by $$80,000.$

The project will last four years selling the following units in each year at $$2/$unit:

Year $1$: $2,000,000$

Year $2$: $2,100,000$

Year $3$: $2,200,000$

Year $4$: $2,300,000$

Fixed cost each year is $$500,000.$

Variable cost in each year is:

Year $1$: $$1\mathrm{.}02$

Year $2$: $$1\mathrm{.}03$

Year $3$: $$1\mathrm{.}04$

Year $4$: $$1\mathrm{.}05$

Depreciation: The company will be using accelerated depreciation defined under MACRS.

At the end of the project, the equipment can be salvaged for $$50,000$ and will recover the full NOWC.

Tax rate is $40\%$ and WACC is $10\%$