Suppose you are working on three new business ideas of your interest. Assume 05 years analysis period for all three business proposals. You have to scrutinize these businesses based on qualitative and economic assessment. You may opt Multiple Attribute analysis to carry out this analysis. Find the best working idea and choose ME option by using incremental cash flow technique. For this, you may take First Cost, Net Cash Flows for 05 years and Salvage Value at the end of 5th year for each proposal. You may consider the appropriate interest rates to assess the options, keeping in mind that selected proposal will have 50-50 D/E ratio and the costs of capital for debt and equity are 15%/year compounded quarterly and 10%/year respectively, as given below, while the other proposal[s] data may be different from the selected case. [Hint: You should synthesize the whole scenario before starting the answering, you will find supportive data from one of these business proposals].

For selected business, list down the costs by segmenting fixed and variable costs, direct and indirect costs. Develop a sample revenue cashflow for 05 years' time horizon in which at least 2 transactions should be outflows. Set suitable 'MARR' for this proposal by observing the 50-50 D/E ratio and the costs of capital for debt and equity are 15%/year compounded quarterly and 10%/year respectively. You must also consider the inflation rate 5% per year besides other interest rates. You have to calculate NPV, AW, and FW. Also, find IRR of this project. You should also resolve the issue of multiple IRR values, if any, by applying the appropriate techniques.

Do the Break-Even Analysis, and Payback Period Analysis to get more business insights. Further, assume the 17% Tax Rate on your selected business. You should use applicable depreciation methods to reduce the magnitude of Taxable Income. Place your relevant calculations in Balance Sheet and develop Profit and Loss (P&L) estimation for Year-1 and Year-2 by simulating your hypothetical business at end of the 2nd Year.