Use the information below to complete the table.

2. A firm is determining whether to invest in a new project designed to make state of the art widgets. The firm has created a tentative sales forecast and investment schedule detailed below. Based on that information complete the income and incremental cash flows tables. (20 points) Year 0 Sales (units) Selling Price (per unit) Costs (per unit) Year 1 10,000 20 Year 2 15,000 30 20 Year 3 20,000 40 25 15 Year 1 Year 2 Year 0 -300 Year 3 50 50 150 300 Investments: (in 000s) 1 Widget Machine 2 Accumulated Depreciation 3 Adjusted Basis of Machine After Depreciation 4 Warehouse Opportunity Cost 5 Net Working Capital 250 150 0 -100 100 0 30 30 37.5 Income: Year 0 Year 1 Year 2 Year 3 Sales Revenue Operating Costs Depreciation Income Before Taxes Tax (34%) Net Income Incremental Cash Flows: Sales Revenue Operating Costs Taxes Cash Flow From Operations Total Cash Flow of Investments Total Cash Flow of Project