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Projected net cash

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Reference no: EM13924506

What should EBIT be? Should i just subtract Fixed cost from the answer I have?

Part 4: Projected Net Cash ($000)

YEAR Number 0 1 2 3 4

Equipment (350,000)

Net Working Capital (50,000)

Sales 500,000 625,000 937,500 1,218,750

Variable Costs 355,000 443,750 665,625 865,313

Fixed Costs 91,000 91,000 91,000 91,000

Depreciation (Eqpt)) 70,000 112,000 67,200 40,320

EBT 75,000 69,250 204,675 313,118

Taxes 26,250 24,238 71,636 109,591

Net Operating Income 48,750 45,013 133,039 203,526

Add back Depreciation 70,000 112,000 67,200 40,320

CASH FLOW from Operations 118,750 157,013 200,239 243,846

Recovery of NWC 50,000

Salvage Value 62,118

TOTAL PROJECTED CF (400,000) 118,750 157,013 200,239 334,166

Reference no: EM13924506

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