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In this question, should I calculate cash flow incorporating with the changes in net working capital? If it is, could you please construct project cash flow for each project? And also please list the right depreciation for each project. In the year 5's cash flow should i add the salvage value back?

The management of a company is considering the manufacture of an electronic product. The Research and Development teams have searched two machines, A and B, both of which make the same products. They now come to seek your advice. The projected quantity of each machine and other information are presented below: The price of each unit is $1,000, and the variable cost is 40% of the selling price. Fixed costs are $10,000 no matter which machine would be used. For either machine, net working capital is estimated to be 20% of next year's sale; it is also estimated to be zero at the end of year 5 . The required rate of return of a similar production is 10%. Company tax rate is 30%. Requirements: 1. In Excel: a. Use Tables in textbook chapter 10 as templates, construct project cash flow of year 0 to 5 . b. Calculate the payback period, discounted payback period, net present value, internal rate of return, and profitability index for each project. 2. In Word: a. Present the results of five evaluation techniques for each project. Make decision by each technique, respectively, with explanation. b. Do the five evaluation techniques lead to consistent decision? Discuss. c. Make your final decision and explain. The management of a company is considering the manufacture of an electronic product. The Research and Development teams have searched two machines, A and B, both of which make the same products. They now come to seek your advice. The projected quantity of each machine and other information are presented below: The price of each unit is $1,000, and the variable cost is 40% of the selling price. Fixed costs are $10,000 no matter which machine would be used. For either machine, net working capital is estimated to be 20% of next year's sale; it is also estimated to be zero at the end of year 5 . The required rate of return of a similar production is 10%. Company tax rate is 30%. Requirements: 1. In Excel: a. Use Tables in textbook chapter 10 as templates, construct project cash flow of year 0 to 5 . b. Calculate the payback period, discounted payback period, net present value, internal rate of return, and profitability index for each project. 2. In Word: a. Present the results of five evaluation techniques for each project. Make decision by each technique, respectively, with explanation. b. Do the five evaluation techniques lead to consistent decision? Discuss. c. Make your final decision and explain

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