8-7 Sensitivity analysis Example - continued Year 0 Years 1-12 工 nvestment 5,400 sales 16,000 Variable costs 13,000 Fixed costs 2,000 Depreciation 450 Pretax profit 550 Taxes 400 220 Profit after tax 330 Operating cash flow 780 Net cash Flow 5,400 780 NPV=$478 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 8- 7 Irwin/McGraw-Hill Sensitivity Analysis Year 0 Years 1 - 12 Investment - 5,400 Sales 16,000 Variable Costs 13,000 Fixed Costs 2,000 Depreciation 450 Pretax profit 550 . Taxes @ 40% 220 Profit after tax 330 Operating cash flow 780 Net Cash Flow - 5,400 780 Example - continued NPV= $478