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please show all work

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Answer #1

Year Year1 Year 2 Year3 Y Year 4 Year 5 Fixed Investment Operating income before tax Tax on operating income (35%) Operating income after tax Add back Depreciation After tax operating cash flow Salvage value Working capital reduction Total cash flow IRR 625000 235000 235000 235000 235000 235000 82250822508225082250 82250 152750 152750152750152750 152750 125000 125000 125000125000 125000 277750 277750277750277750 277750 60000 55000 625000277750277750277750277750392750 36.47%

Depreciation calculation = 625000/5 = 125000

IRR can be calculated using IRR function in excel based on the final cash flows.

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