The owner of the company you work for has presented you with data about a potential investment.

Machine

Original outlay (beginning of Year 1):$350 000

Expected net cash inflow:

YearAmount

1$45 000

2$45 000

3$55 000

4$50 000

Salvage value (expected in year 4) is $105 000

The owner of the company estimates the cost of capital to be 7%.The company has enough funds to meet all capital expenditure requirements.

Required:

c.Applying the concept of a Life Cycle Analysis, list and explain three other factors that should be included for further investigation within your investment appraisal above (5 marks).