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