Evaluate different capital investment appraisal techniques by completing the calculations shown below
Bongo Ltd. is considering the selection of one of two mutually exclusive projects. Both would involve purchasing machinery with an estimated useful life of 5 years. Project 1 would generate annual cash flows (receipts less payments) of £200,000; the machinery would cost £556,000 with a scrap value of £56,000. Project 2 would generate cash flows of £500,000 per annum; the machinery would cost £1,616,000 with […]