Year Year Year Year Year 0 1 2 3 4 Check figures: NPV = $25,001,574 and...

Transcribed Image Text:

Year Year Year Year Year 0 1 2 3 4 Check figures: NPV = $25,001,574 and IRR = 12.76%. Sales OEM market x X x Replacement market X X x X X x Total sales x X X x - Variable costs X X X X - Marketing and administrative costs X X X X - Depreciation x X X X EBT X X X X - Taxes x X X X = Net income + Depreciation = Operating cash flow Cost of the production equipment Net working capital X X X X X X X X X X X X = Total cash flows X X X X x x X X X X X X X X NPV IRR X X x x Year Year Year Year Year 0 1 2 3 4 Check figures: NPV = $25,001,574 and IRR = 12.76%. Sales OEM market x X x Replacement market X X x X X x Total sales x X X x - Variable costs X X X X - Marketing and administrative costs X X X X - Depreciation x X X X EBT X X X X - Taxes x X X X = Net income + Depreciation = Operating cash flow Cost of the production equipment Net working capital X X X X X X X X X X X X = Total cash flows X X X X x x X X X X X X X X NPV IRR X X x x