Your company produces candy and considers introducing a new flavor. A year ago, the company spent $18,500 on a marketing survey to learn about consumer interest in this flavor. If this new type of a candy is produced and offered for sale, the estimated revenue in Year 1 is $300,000. Sales are forecasted to grow at a rate of 4% per year. Incremental variable costs are expected to be 65% of incremental revenues. The net working capital in Year 0 is expected to be $74,000 with a full recovery at the end of the project. This project requires an immediate investment of $120,000 in equipment. The equipment is to be depreciated over 10 years on a straight-line basis to zero value. The new candy flavor will be discontinued in 5 years, and the project will end. At the end of this project, the equipment will be sold for $86,000. The tax rate is 40%, and the required rate of return is 12%.
How do I find the sales, deoreciation, variable costs, EBIT, Taxes, Net Income?