The table below illustrates a very simple capital budgeting project over just three years . It represents many of the key items in the capital budgeting process . The WALL is given , 1 1. DY's , and the tax rate used for analysis and planning is 28 . 096 . Run through the calculations necessary to find the numbers for the missing spaces with dollar signs . Round answers to Period O Period I Period 2 Period 3 Depreciation $400 $400 $ 400 Other operating expenses $5.50 $825 $ 1, 200 Operating income* $ 1250' $500 NOPAT $ 1 180 $ 504 Adjustment for depreciation $400 $400 $ 400 Anticipated changes in Sales from existing products Salvage or terminal value $300 Project capital investments $ 1 1 , 200) Net incremental cash flows $ 1 1, 200 5220 $ 1, 348 WACZ 1 1 . 09/0 $ ( 1, 2001 $198 $985 NPV