From the American Grain Company case answer the following question

Q1- Determine the initial net cash outflow for this project ?

Q2- Detremine the net cash flow (years 1 to 7) if the new pellet mills are purchased ?

Q3- Calculate the NPV for the pellet mill project

Q4 - Calculate IRR for pellet mill project

Q5 - What is the payback for the pellet mill project

Q6- Should AGC invest in the new pellet mill

Q7- For what reasons besides those presented in this case might this project be unacceptable

Q8 - How whould you respond if a member of divisional budget committee made the committee made the comment at the end of your presentation that he was agianst the project because it only made a profit of $35,000