The owners are considering further expansion and have identified an opportunity to buy an established courier business in the South of England. MJ and TJ are unsure about how to evaluate the opportunity from a financial perspective. They have asked you to provide a critical analysis of three investment appraisal techniques that they could consider before actually committing to the investment. Appendix one: On Time Deliveries Ltd, Financial Projection for 2022 Profit per Van Scenario 1 Scenario 2 Full Year Forecast Scenario 1 Scenario 2 Assumptions 20 Vans are on short term rent, drivers are on zero rate contracts E Assumes 20 Vans are purchased and 22 drivers on permanent full time contracts f E Each van operates 52 weeks a year,5 days a week and makes 30 delivenes a day. This assumes that the vans are running at 75% of their capacity Sales 52,260 52,260 1.045,200 1,045,200 Less costs Fuel Driver 15,600 22,750 15,600 20,000 312,000 455,000 312,000 440,000 Includes insurance, depreciation or rental costs and maintenance Van Costs 5,000 4,000 100,000 80,000 8,910 12,660 178.200 213,200 Other Costs Office statt owners salary Insurance Office Rent Other 40.000 80,000 3,000 15,000 3,000 40,000 30,000 3,000 15,000 3,000 Profit 72200 The owners are considering further expansion and have identified an opportunity to buy an established courier business in the South of England. MJ and TJ are unsure about how to evaluate the opportunity from a financial perspective. They have asked you to provide a critical analysis of three investment appraisal techniques that they could consider before actually committing to the investment. Appendix one: On Time Deliveries Ltd, Financial Projection for 2022 Profit per Van Scenario 1 Scenario 2 Full Year Forecast Scenario 1 Scenario 2 Assumptions 20 Vans are on short term rent, drivers are on zero rate contracts E Assumes 20 Vans are purchased and 22 drivers on permanent full time contracts f E Each van operates 52 weeks a year,5 days a week and makes 30 delivenes a day. This assumes that the vans are running at 75% of their capacity Sales 52,260 52,260 1.045,200 1,045,200 Less costs Fuel Driver 15,600 22,750 15,600 20,000 312,000 455,000 312,000 440,000 Includes insurance, depreciation or rental costs and maintenance Van Costs 5,000 4,000 100,000 80,000 8,910 12,660 178.200 213,200 Other Costs Office statt owners salary Insurance Office Rent Other 40.000 80,000 3,000 15,000 3,000 40,000 30,000 3,000 15,000 3,000 Profit 72200