Question: Year 0 1 2 3 4 5 6 7 Initial Investment -10,000,000 Sales 3,895,000 3,895,000 Variable costs 500,000 500,000 Fixed costs 400,000 400,000 Depreciation 1,380,262

Year 0 1 2 3 4 5 6 7
Initial Investment -10,000,000
Sales 3,895,000 3,895,000
Variable costs 500,000 500,000
Fixed costs 400,000 400,000
Depreciation 1,380,262 1,333,587
Pretax profit
Taxes (at 35%) 0 0 0 0 0 0 0
Profit after tax 0 0 0 0 0 0 0
Cash flow from operations 1,380,262 1,333,587 0 0 0 0 0
Real Discount rate 10.00%
Present value of cash inflows 2,356,922
Net Present value -7,643,078

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