📘 Instructions (Read Carefully)

1. 🛠️ Step 1: Input Initial Investment
   • Enter the cost of equipment, installation, and inventory increase.
   • Enter any increase in accounts payable (A/P) to reduce your initial cash outlay.
2. 📅 Step 2: Input Operational Data for Each Year
   • For Years 1 to 4, input the number of units expected to sell and the price per unit.
   • Input annual operating costs (excluding depreciation).
   • Depreciation is automatically calculated as straight-line based on Equipment + Installation / 4 years.
3. 🧮 Step 3: Review Calculated Cash Flows
   • The table shows calculated total revenue, total costs, operating income, tax, and after-tax income.
   • Operating Cash Flow = After-Tax Income + Depreciation (non-cash expense).
4. 🚪 Step 4: Terminal Year Inputs
   • Input the recovery of net working capital and salvage value of equipment. Tax on salvage is calculated automatically based on the tax rate.
   • This is added to the final year’s cash flow.
5. 📉 Step 5: Set WACC and Tax Rate
   • WACC (Weighted Average Cost of Capital) is used to discount future cash flows.
   • Tax rate is used to calculate taxes on operating income.
6. 📊 Step 6: Analyze Outputs
   • NPV (Net Present Value): Present value of all cash flows including Year 0.
   • IRR (Internal Rate of Return): The return that makes NPV = 0.
   • Payback Period: Time it takes to recover the initial investment from cumulative cash flow.
   • Monte Carlo: Simulates 20 cases with randomized WACC and Tax Rate, then shows average NPV.