capital budget. 3 methods. NPV, IRR, Simple payback. what is the net cash inflow?

For all scenarios, assume spending occurs on day 1 of each year and benefit or annual savings occurs on day 365 . Also assume the discount or interest rate for all scenarios is 10%. Ignore taxes and depreciation Assume the cfo has set a max of 2 years for approval using the simple payback method, and 17% hurdle rate when using the IRR method; using the net present value method, NPV, projects must have NPV>0 to receive approval Scenario A: Invest in a New Factory A company wants to build a new factory for increased capacity. Using 3 capital budgeting methods, make a determination about the economic viability of the proposal using the following information Building a new factory will increase capacity 30%. Current capacity is $10 million sales with 5% profit margin. The profit margin % is expected to continue. . . . The factory costs $10 million to build. .The new capacity will meet the needs of the business for 10 years. . The factory will be worth $14 million and will be sold at the end of 10 years