This is a sample problem:

Based on the sample I need a new one created based on these requirements.

Company Info:

• The carnmetarbor production will require the company to purchase additional fixed assets that will cost $1,000,000 at t = 0. For tax purposes the facility will be depreciated on a straight-line basis to zero over 3 years.
• At the end of three years, the company will exit the business and will sell the fixed assets at an estimated value of $275,000.
• The project will require a $65,000 increase in current assets, and a $30,000 increase in accounts payable at t = 0.
• The InvestEd's marginal tax rate is 25%.
• The new line of business is expected to generate an additional $1,750,000 in annual sales. The operating costs excluding depreciation are expected to be $1,350,000 per year.
• The projects cost of capital is 12%.

Requirements:

• calculate the projects' cash flows (free cash flows),
• calculate the criteria for evaluating the proposed projects,
• graph the NPV profile for each project so the company can see the range of rates in which each project is worth, and
• finally, based on the information in the proposals, you need to advise InvestEd on which proposal they should select and explain why they should select it.

Five-Year MACRS depreciation schedule

Year	Depr
1	20.00%
2	32.00%
3	19.20%
4	11.52%
5	11.52%
6	5.76%