answer option 2

Multipliers: Yr 1 0.909 Yr 2 0.826 Yr 3 0751 Yr 4 0683 Yr 5 0.621 Option ## Investment Yr Net Income from Operations Net Cash Flow Average Cash Rate of Return Payback Period (12% min) (3 years max) Cash Flow Present Value (10%) Net Present Value P.V. Index (>1,00) $ Option 1 $ 100,000 1 2 3 5,000 5,000 5,000 5.000 $ 15,000 $ 35,000 $ 60.000 $ 35.000 4 5 Totals $ 5,000 $15.000 25,000 $ 160,000 1 $ Option #2 $ 200,000 2 6,000 9,000 12.000 15,000 3 4 $ 100,000 70,000 30.000 25.000 25.000 $ 250,000 5 18,000 60,000 Totals $