A complete Excel workbook, each worksheet should represent one of the projects, complete with an evaluation using all four methods: Tab 1: ARR Tab 2: Payback Tab 3: IRR Tab 4: NPV

Project 1

Cost: $1,228,000 Year 1 - $96,230 Year 2 - $293,893 Year 3 - $355,000 Year 4 - $263,000 Year 5 - $243,000 Depreciation $63,200 per year

Project 2

Cost: $ 619,000

The expected growth in sales is:

Year 1: $43,500 Year 2: $71,930 Year 3: $135,875 Year 4: $200,000 Year 5: $165,550

The related increase in expenses each year is as follows for maintenance of the warehouse which is currently estimated for utilities only:

Year 1: $11,000 Year 2: $15,000 Year 3: $29,000 Year 4: $38,000 Year 5: $32,000 Depreciation $18,230 per year.

Assumptions for both Projects:

- The companys cost of capital/discount rate is 7%

- The companys tax rate is 20%

- The funds readily available for investment in the company are $250,000. The company will need to obtain financing for the remainder.

- The projects cannot start simultaneously. While there might be an option to stagger them, funding can only be approved for one investment for this budget period and there are no guarantees on capital available for the next 12-24 months after that.

- Both proposals were introduced prior to the pandemic