YEARLY SAVINGS BEFORE DEPRECIATION

INVEST- AND TAXES - END OF YEAR

PROJECT MENT 1 2 3 4 5

DNA Testing
Equipment 60,000

MACRS Percentages 33.33% 44.45% 14.81% 7.41%

Required rate of return: 15%

Tax rate 38%
Inflation rate: 6%

CASH FLOWS:
END OF YEAR
1 2 3 4 5
Project A

Savings
Depreciation
Profit before Taxes

Taxes

Cash flow (Savings

less taxes)

a.
NET PRESENT VALUE:
 YEARLY SAVINGS BEFORE DEPRECIATION
INVEST- AND TAXES - END OF YEAR
PROJECT MENT 1 2 3 4 5

DNA Testing
Equipment 60,000

Working
Capital
Requirement 10,000

Total 70,000

MACRS Percentages 33.33% 44.45% 14.81% 7.41%

Required rate of return: 15%

Tax rate 38%
Inflation rate: 6%

CASH FLOWS:
END OF YEAR
1 2 3 4 5
Project A

Savings
Depreciation
Profit before Taxes

Taxes

Cash flow (Savings

less taxes)

a.
NET PRESENT VALUE: