Using the template provided, analyze the project 2 with Net Present Value, Internal Rate of Return, Payback Period, and Modified Payback Period Project 2 Expand concessions and gift shops Requires the purchase and customization of portable facilities and equipment, estimated to cost $772,500 upfront In addition, again due to the seasonal and transitional nature of the circus industry, Jo Jo estimates that she will need to dedicate working capital of $10,500 at the beginning of the project The $10,500 working capital will become available once the project's life is over Jo Jo expects the project to yield positive net annual cash flows over the project's expected 6 year life as follows End of 1st Year $281,300 End of 2nd Year $259,000 End of 3rd Year $236,300 End of 4th Year $202,500 End of 5th Year $157,500 End of 6th Year $112,500 Given Jo Jo's management team's experience with concessions and gift sales, Jo Jo feels confident that the net annual cash flows will be between 90 and 110 of the above estimates Jo Jo expects to scrap the concession and gift shop facilities and equipment at the end of the 6 years for $8,000 Jo Jo's investors require 15 return on their invested cash each year The circus has managed to secure a tax haven such that they do not expect to pay any income taxes over the foreseeable future

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Using the template provided, analyze the project #2 with Net Present Value, Internal Rate of Return, Payback Period, and Modified Payback Period. Project #2: Expand

Using the template provided, analyze the project #2 with Net Present Value, Internal Rate of Return, Payback Period, and Modified Payback Period.

Project #2: Expand concessions and gift shops

Requires the purchase and customization of portable facilities and equipment, estimated to cost $772,500 upfront.
In addition, again due to the seasonal and transitional nature of the circus industry, Jo Jo estimates that she will need to dedicate working capital of $10,500 at the beginning of the project. The $10,500 working capital will become available once the project's life is over.
Jo Jo expects the project to yield positive net annual cash flows over the project's expected 6-year life as follows:
End of 1st Year: $281,300
End of 2nd Year: $259,000
End of 3rd Year: $236,300
End of 4th Year: $202,500
End of 5th Year: $157,500
End of 6th Year: $112,500
Given Jo Jo's management team's experience with concessions and gift sales, Jo Jo feels confident that the net annual cash flows will be between 90% and 110% of the above estimates.
Jo Jo expects to scrap the concession and gift shop facilities and equipment at the end of the 6 years for $8,000.

Jo Jo's investors require 15% return on their invested cash each year. The circus has managed to secure a tax haven such that they do not expect to pay any income taxes over the foreseeable future.