Dep WorkNn Proreciation 1. Usan 2. Usan 3. Usanking CapitNote: These not include t4. Finwosa YeaSale1. Finwosa YeaSale5. Finwosa YeaSaleoblem S(sing MARCS n investmentsing MARCS n investmentsing MARCS n investmenttal problems shthe release ond the chanorking capitales. ar es nd the chanorking capitales. ar es nd the chanorking capitales. ar es Set: Ca(Solutiodepreciatiot of $1,000,00depreciatiot of $5,000,00depreciatiot of $250,000how the yeaof all workingnges in workal of $10,0000 ---- nges in workal of $25,0000 ---- nges in workal of $1,000 0 ---- ash Floons Ben schedule, 00. n schedule, 00. n schedule, 0. r-to-year chag capital in tking capital 0 and must m1 $150,000king capital 0 and must 1 $300,000king capital and must m1 $10,000 ow Estielow) find the de find the de find the deange in net the final yea for a projemaintain a w2 0 $125 for a proje maintain a 2 0 $400 for a projemaintain a w2 $8,0imatioepreciable aepreciable aepreciable a working capar. ct that requworking cap5,000 ct that requ working ca0,000 ct that requworking cap000 n mounts of fomounts of fomounts of fopital. They duires an initiapital of 12% o3 $100,000 uires an initiapital of 8% o3 $500,000 uires an initiapital of 12% o3 $6,000 or or or do al of al of al ofSolutions Depreciation 2. Using MARCS depreciation schedule, find the depreciable amounts of for an investment of $1,000,000. 3. Using MARCS depreciation schedule, find the depreciable amounts of for an investment of $5,000,000. 4. Using MARCS depreciation schedule, find the depreciable amounts of for an investment of $250,000. Working Capital 5. Find the changes in working capital for a project that requires an initial working capital of $10,000 and must maintain a working capital of 12% of sales. Year 0 1 2 3 Sales ---- $150,000 $125,000 $100,000 6. Find the changes in working capital for a project that requires an initial working capital of $25,000 and must maintain a working capital of 8% of sales. Year 0 1 2 3 Sales ---- $300,000 $400,000 $500,000 Year 0123456MARCS 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%Investment $1,000,000Depreciation $200,000.00 $320,000.00 $192,000.00 $115,200.00 $115,200.00 $57,600.00Year 0123456MARCS 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%Investment $5,000,000Depreciation $1,000,000.00 $1,600,000.00 $960,000.00 $576,000.00 $576,000.00 $288,000.00Year 0123456MARCS 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%Investment $250,000Depreciation $50,000.00 $80,000.00 $48,000.00 $28,800.00 $28,800.00 $14,400.00Year 0123Sales---- $150,000 $125,000 $100,000 Working Capital Needed $10,000$18,000 $15,000 $12,000 Change in Net Working Capital $10,000 $8,000 ($3,000) ($3,000)7. Find the changes in working capital for a project that requires an initial working capital of $1,000 and must maintain a working capital of 12% of sales. Year 0 1 2 3 Sales ---- $10,000 $8,000 $6,000 Year 0123Sales---- $300,000 $400,000 $500,000 Working Capital Needed $25,000$24,000 $32,000 $40,000 Change in Net Working Capital $25,000 ($1,000) $8,000 $8,000Year 0123Sales---- $10,000 $8,000 $6,000 Working Capital Needed $1,000$1,200 $960 $720 Change in Net Working Capital $1,000 $200 ($240)