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Your company is considering two projects and has estimated the following cash flows: YearProject AProject B0-15,000-20,000110,00010,000210,00020,000 If project B expands your manufacturing capacity by building

Your company is considering two projects and has estimated the following cash flows:

YearProject AProject B0-15,000-20,000110,00010,000210,00020,000

If project B expands your manufacturing capacity by building a separate factory, what is the relevant cash flow for evaluating project B in year 2?

If project B replaces an existing factory (project A), what is the relevant cash flow for evaluating project B in year 2?

If project B replaces an existing factory (project A), what is the relevant cash flow for evaluating project B in year 0?

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