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bakery cash flow - MECE 348.600 - Contemporary Issues Untitled Week 10/11 problem Economic analysis RIT Dubai Given Option 1 Option 2 Unit New blow

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bakery cash flow - MECE 348.600 - Contemporary Issues Untitled Week 10/11 problem Economic analysis RIT Dubai Given Option 1 Option 2 Unit New blow molding machine capex in year 0 700,000.00 500,000.00 AED Annual additional maintenance 25,000.00 15,000.00 AED 20,000.00 Annual material savings Annual electricity savings 20,000.00 AED 750,000.00 675,000.00 kWh Average electricity cost Lifetime 0.445 AED/kWh 5 Years Discount rate 5.00% Calculate for each option Annual cashflow (bars) graph for each year Cumulative annual cash flow (line) graph covering all project lifetime years Net Present Value (NPV) at the end of the project lifetime Internal Rate of Return (IRR) at the end of the project lifetime Simple payback period (SPP) Brief discussion (100 words) of which option is preferred and why Grade 20% 20% 10% 20% 10% 20%

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