1: What is the Average Rate of Return for each project and which one is more advantageous?

2: What is the Cash Payback for each project and which one is more advantageous?

3: What is the difference between the income and the cash flow for each year and each project? What is driving the difference? Does it mathematically make sense?

We are considering investing in the following 2 different modes of transportation to take clients on scenic tours of the Midwest: Project A: Prop Plane Project B: Helicopter $368,000 5 years Cost Life Residual Value Rate of return $368,000 5 Years $0 12% $0 12% Expected Returns Year 1 Year 2 Year 3 Year 4 Year 5 Income 61,400 51,400 36,400 26,400 (3,600) Cash Flow 135,000 125,000 110,000 100,000 70,000 Income 34,400 34,400 34,400 34,400 34,400 Cash Flow 108,000 108,000 108,000 108,000 108,000