solution - small problem - Solution to Part a YEARS ->...

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Solution to Part a YEARS -----------------------------------> 0 1 2 3 4 Revenue Earned (1100*12) (25,000.00) 13,200.00 13,200.00 13,200.00 13,200.00 Less: COGS (400*12) 4,800.00 4,800.00 4,800.00 4,800.00 Gross Margin 8,400.00 8,400.00 8,400.00 8,400.00 Less: Depreciation 3,286.00 3,286.00 3,286.00 3,286.00 Service Fees (150*12) 1,800.00 1,800.00 1,800.00 1,800.00 Machine Update charges (20*7*12) 1,680.00 1,680.00 1,680.00 1,680.00 Internet Charges (50*12) 600.00 600.00 600.00 600.00 Sales Commission (5% of sales) 660.00 660.00 660.00 660.00 Profit Before Tax 374.00 374.00 374.00 374.00 Less: Tax (25%) 94.00 94.00 94.00 94.00 Net Income 280.00 280.00 280.00 280.00 Add: Depreciation 3,286.00 3,286.00 3,286.00 3,286.00 Opearting Cash Flow 3,566.00 3,566.00 3,566.00 3,566.00 Add: Sale of machine Less: Tax on sale of machine Net Operating Cash Flow 3,566.00 3,566.00 3,566.00 3,566.00 PVF @ 11% 0.90090 0.81162 0.73119 0.65873 PV (25,000.00) 3,213.00 2,894.00 2,607.00 2,349.00 NPV (4,437.00)
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solution - small problem - Solution to Part a YEARS ->...

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