We will start off with some preliminary work, including the depreciation each year, sales price, and unit costs:

The change in net working capital for each year is the beginning net working capital for each year minus the net working capital investment at the end of the year. So$,$ the

change in net working capital each year is:

Net working capital

Beginning NWC

End of year NWC

NwC cash flow

The machine will have a salvage value at the end of the project, but we are concerned with the aftertax salvage value, which is: