Question: Year Van cost including modifications Increase in NOWC Increase in sales Increase in costs Depreciation Earnings Before Tax Tax at 21% Earnings After Tax

Year Van cost including modifications Increase in NOWC Increase in sales Increase

Year Van cost including modifications Increase in NOWC Increase in sales Increase in costs Depreciation Earnings Before Tax Tax at 21% Earnings After Tax EBIT (1-T) Add back depreciation EBIT (1-T)+Depreciation After Tax Salvage Value Cash Flow Depreciation rate Depreciation $ Salvage Value Book Value Gain (or Loss) Tax on Gain (or Loss) After Tax Salvage Value 0 2 3 Use the following Section to Determine Cumulative Cash Flows for your Payback Period and Discoun Cash Flow Cumulative CF Cash Flow PV factor 1/(1+0.10)^year Discounted CF Cumulative Discounted CF Cash Flow PV factor 1/(1+0.075)^year

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