From a spreadsheet which you will use as a framework (available here), you will evaluate the profitability of a capacity investment: the company buys a machine to manufacture and sell products during a given period.

You got the following information:

• Investment lifetime 10 years
• Number of products sold 10,000 units per year
• Unit selling price $100
• Unit production cost $55 (only cash items)
• Machine purchasing price $1,350k
• Corporate tax rate 40%
• WACC 6%

The machine is evenly depreciated over its expected lifetime.

The attached file (see annex) discounts the cash-flows and accumulates them. Your task consists, then, to fill the cells in blue:

As the investment amount are given in $k, I suggest you use $k for all calculations.