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InitialinvestmentSalvagevalueInitialrevenueInitialexpensesTaxrateAccountsreceivable.as%ofsales10%Inventoriesas%ofexpensesDiscountrate6,000,machinelasts3years(1through3)2,000(receivedatt=4)15,000(att=1),growsby$1000everyyearfor2years,stopsatt=310,000,growsby$600everyyear(stopsat3)0.3510%0.10 Cash Flow from Capital Investments (the Investors) \begin{tabular}{|l|l|l|l|l|l|l|} & year & t=0 & t=1 & t=2 & t=3 & t=4 \\ Cash flow from capital \\ 1. & & & & & \end{tabular} OCF (The Accountants) (a) Revenue (b) Expense (c) Depreciation (d) PBT (a-b-c) (e) Tax@35\% of (d) (f) PAT (de) 2. OCF [Add back Depr. (f+c) ] Working Capital (The Operations Guys) (a) Inventories = 0.1 next year's expense (b) Account Receivable= (c) Total =(a)+(b) (d) Change in WC (c) (at time t over previous) 0 3. Minus of (d)=CF from WC Project Evaluation (The CFOs) Information for: The Accountants, from the Investors: \begin{tabular}{|l|r|r|r|r|r|} Year & t=0 & t=1 & t=2 & t=3 & t=4 \\ Depreciation & 0 & 2000 & 2000 & 2000 & 0 \\ \hline \end{tabular} Information for: The Operations Guys, from the Accountants: \begin{tabular}{l|r|r|r|r|r|} \hline year & t=0 & t=1 & t=2 & t=3 & t=4 \\ Revenue & 0 & 15,000 & 16,000 & 17,000 & 0 \\ Expense & 0 & 10,000 & 10,600 & 11,200 & 0 \\ \hline \end{tabular}

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