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case results might vary, the expected free cash flows are in the table below. Please use these numbers when completing this case. Year 0 Operating

case results might vary, the expected free cash flows are in the table below. Please use these numbers when completing this case.
Year 0
Operating CF
Operating CF
Less: Inv in Op Cap
Change in FA
$1,350,000
Change in NWC
$20,000
($1,370,000)
264,700
346,300
259,260
207,036
207,036
167,868
128,700
214,700
Freo Cash Flow
Year 5
346,300
Year 3
Year 4
259,260
207,036
207,036
$264,700
Year 2
the
Year 7
167,868
128,700
128,700
($66,000)
($20,000)
214.700 feel might be important to this decision. important to note - I am not as concemed about the correct ratios as I am your ability to apply those results to your interpretation of the problem).
Questions
What is the payback period?
What is the discounted payback period?
What is the NPV?
What is the IRR?
What is the MIRR?
What is the Profitability Index?
What would you recommend to management based on this analysis?


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