The information sheet must include:

A completed capital investment appraisal for Andrews expansion.

An interpretation of the capital investment appraisal results.

An assessment of the importance of discounted cash flow techniques when analyzing financial information to inform decision making.

An interpretation of the capital investment appraisal results you have calculated

with a justified recommendation for Andrew.

Andrew has asked you to prepare an information sheet entitled 'Management Accounting'. Andrew has provided you with the following predicted cash flow data for two possible options for his expansion - Option A and Option B Year Option A- Purchase of a new store Option B - Build an extension to the existing store 0 (300 000) (100 000) Initial Outlay 1 80 000 20 000 2 80 000 30 000 3 90 000 30 000 4 90 000 50 000 5 100 000 50 000 Andrew's cost of capital is 10% per annum. The extract from the Present Value tables of 1 at 10% Year o 1 Year 1 0.909 Year 2 0.826 Year 3 0.751 Year 4 0.683 Year 5 0.621