The company above is considering a 5 year project which would require an initial outlay of

$800,000 for the manufacturing equipment (depreciated straight line to zero over 8 years). Salvage

value in year 5 will be $200,000. In addition, the company will need $200,000 initial investment

in working capital. The project will produce OCF of $350,000 for 5 years.

a)

NPV

b) IRR

c)

PI

d) Payback and Discounted Payback