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You just graduated from USIU - AFRICA and given a job in a production company as an investment consultant. The company is contemplating on which

You just graduated from USIU - AFRICA and given a job in a production company as an investment consultant. The company is contemplating on which investment to make between buying a new processing plant which costs $150,000.00 and buying government shares worth $200,000.00. The net cash flows for each are given below. Year Processing plant Shares 1 50,000 50000 2 50,000 50000 3 40,000 40000 4 35,000 30000 5 20,000 50000 Use five investment appraisal methods with your own discounted rate of returns where possible to advise the company. (15 marks)

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