Moonshine Fintech Limited (MFL) is a growing manufacturing company. It produces different designs of fasteners which are used by automobile and construction industries. Hence, MFL supplies to the clients that are original equipment manufacturers (OEM). MFL manufactures customized design of fasteners based on the requirement of OEM clients. Its projects have a short life as it introduces new designs periodically.

MFL is currently considering three projects P, Q and R which has different characteristics. Project P is related to a new design of fasteners which will have initial cash outlay but has a huge benefit in the following year and in the second year it will incur a minor cost of maintenance. Project R is related to existing design of fasteners and hence its cash flows will decrease over the time. The third project, Project R, is related to existing design with minor changes and hence its cash flows will increase over the time.

The expected cash flows as mentioned above for all the three projects are as under: