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Q1: Recommend one of the projects using payback period methods Project x Project X Year 3 Year 4 Year 5 Year 6 Investment 0 Year

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Q1: Recommend one of the projects using payback period methods Project x Project X Year 3 Year 4 Year 5 Year 6 Investment 0 Year 1 Cash Flow Year 2 Year 3 Year 4 0 Year 5 Year 6 Year 1 Year 2 Cash Inflows 0 2689.25381.1 8097.3 10759.513748.4 17933.4 0 6642 7306.2 Cash Outflows 25903.8 2689.2 2988.9 3488.43985 2 4484.7 49815 34870.5 1328.4 1992.6 7970.4 8634,6 9298.8 2656.8 3321 3985.2 9963 4649.4 Q2: check whether the project is accepted or rejected and recommend the best project, MARR=6% and n=8 years, using ROI, NPV, AW, IRR methods. Salvage Initial cost 189000 Project A Annual Increase in Annual revenues annual revenues running cost 40500 1350 8100 Project B Annual Annual revenues running cost 48600 1350 Initial cost 270000 value Salvage value 27000 18900

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