You are finally in a position to use your knowledge to economically evaluate the expansion initiative that the company wants realize. The project considers an investment initiative that will be evaluated at five years. Sales of 40,000 units were projected for the first year of the project, 45,000 units for years 2 and 3 and 48,000 for years 4 and 5. An estimated selling price of USD 15 per unit and a unit variable cost of USD 5. The project considers an administrative structure in which it is estimated monthly expenses of USD 6,000. Also, expenses must be included. operational for a cost of USD 8,000 per month, the rental of commercial offices of 300 m2, whose price is estimated at USD 2,000 per month, contract that has been agreed for the next five years and a working capital initial $30,000 in year 0, $10,000 in year 1, and $10,000 for year 2.

The project considers the purchase of land for USD 120,000, the land has an increase on sale of 25% in year 5 and the purchase of other assets which was done at the beginning of the project. Depreciation is considered linear and total, is considered capital gain or loss.

The following table provides: the value of each asset, the years of useful life (for depreciation purposes), and the amount that will be obtained at the end of the project, when selling the equipment (expressed as a percentage of its initial value).

other assets	unit cost	quantity	useful accounting lifE	residual value (year 5)
physical works	150000 USD	1	25	30%
machine	45000 USD	2	15	40%
equipment	30000 USD	4	12	35%

The income tax rate is 27%, the capital cost rate (TRMA) is 10% per annum with quarterly compounding. Consider an annual inflation of 3%.

Prepare the cash flow of the project, considering the following:

A. Without external financing (Pure).

B. With financing (financed): considering a credit in 5 installments fixed annual equals with two years of thanks included in the credit with payment of interest, for 50% of the investment only (does not include capital of work). The Bank's credit committee has established to obtain through the credit operation a return of 7% per semester capitalizable bimonthly with the operation.