FinMan Greenfingers Plc, who produce a variety of high quality outdoor rattan furniture and associated items, is considering whether or not to invest in the potential to expand the business, the directors identifying three main options for a four-year plan: A. Expand its flourishing retail outlet to include all products. B. Develop into internet sales. C. Produce greenhouses and conservatories. These options would require initial expenditure of (A) 650,000, (B) 1,100,000, or (C) 1,800,000. The most recent estimates on year-end cash flows is as follows:

The most recent estimates on year-end cash flows is as follows:

Year 1 Year 2 Year 3 Year 4

'000 '000 '000 '000

(A) 300 400 450 500

(B) 500 550 700 950

(C) 500 800 1050 1200

Assume corporation tax is 25% and capital allowances are 20% on a straight line basis. All of these cashflows occur in the year that they arise.

My 1st question is how and when do I include this information in my calculations?: Assume corporation tax is 25% and capital allowances are 20% on a straight line basis. All of these cashflows occur in the year that they arise.