2 cash flow projections for 2 processes

2 cash flow projections for 2 processes

Process 1

012345

EBIAT*150,000200,000300,000470,000500,000

Depreciation200,000200,000200,000200,000200,000

Initial Investment(1,000,000)

process 2

012345

EBIAT*440,000240,000175,00040,00040,000

Depreciation160,000160,000160,000160,000160,000

Initial Investment(800,000)

COST OF CAPITAL FOR BOTH PROCESSES 9.75%

COMPUTE NET PRESENT VALUE, INTERNAL RATE OF RETURN, INCREMENTAL IRR, PROFITABILITY INDEX, PAYBACK PERIOD, DISCOUNTED PAY PERIOD FOR EACH OF THE 2 PROCESSES