Alisa company. proposed to install one Robotic Machine for his new project, an initial investment of Flair Technology will be 675,000 and the Robotic will be expected to generate net cash flows of at the end of first, second, third, fourth and fifth year 227,000, 222,000, 199,000, 192,000 and 197,000 respectively.

On the other hand, an initial investment of Flash Robotics will be 580,000 and the Robotic will be expected to generate net cash flows of at the end of first, second, third, & fourth year 222,000, 218,000, 212,000 and 188,000 respectively.

No Salvage Value of the Robotic.

The discounted rate is @ 15% for both the proposals.

Estimate the Payback Period Method for each of the proposals with the desired payback period of 3.5 Years.

Determine Net Present Value

Comment On Selection / Rejection as per the NPV and Payback Period