I see here are performed a few different types of investment evaluation (e.g., payback period, net present value, IRR) Which of these is the important to focus on and why? Why are these different types of evaluation better or worse than each other?Also, I see here are some recommendations made.However, I was wondering if you could let me know of any other creative business recommendations, outside the scope of this case, that I could consider in the future. Please explain why you think any recommendation you have are a good idea considering managerial accounting concepts.Recommendations:Based on the computations and the data presented in this report, we will recommend McCoy to buy the new truck/trailer combination because it is a profitable investment and will help the business grow.The following findings support our recommendation:1. To purchase the bigger trailer/Truck to increase the goat capacity to 32 goats and the number of jobs he can accept by year. This will give him the opportunity to accept 41 jobs a year instead of 37.2. The purchase will increase his profit by almost 32%, bringing it from $4,224.50 to 13,058.50.3. With the new combination, it is expected to have an Incremental revenue of $26,205, which is a significant increase from the current truck/trailer.4. Another fact that supports buying the new truck/trailer is that he will see his return on investment in less than 3 years (2.71 year period), which is very good because he would have the remaining revenues from the rest of the 5 periods as profit.5. The investment will also have a positive net present value of $7,870 at a discount rate of 12%.6. The IRR is 25% which is also a good IRR, which supports that the investment is a good opportunity.7. Overall, the analysis suggests that buying the new truck/trailer is a good investment.

Cumulative Net cash Year Initial investment Net Annual Cash Flow Flow .1 - .I 3,334 35.333 _ 8,834 44.170 Investment Cost Year 2 cumulative value (less) Additional CF needed Year Fractional year Additional CF needed Fractional year Payback Net Present Value at a Discount Rate of 12% Present Initial Net Annual Discount Value of Net investment Cash Flow Rate at 12% Cash Flow 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Net present value of cash inflows 31,845 Capital Investment (less) 23,975 Net present value 7,870 Internal Rate of Return 8,834 Annual CF 8,834 Annual CF 8,834 Annual CF n 8,834 Annual CF 8,834 Annual CF Internal Rate of Return Initial Investment 23,975 Annual Cash inflows 8,834 IRR factor 2.71395 |RR% 25%