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amounts and subtract where necessary.)
Net Income

Alternative Alternative Increase

 A B (Decrease)

 
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 Net 4-Year Income


Increase
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Net Income
 ÿell Process Further Increase
(Basic kit) (ÿtage 2 Kit) (Decrease)

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Current Machine New Machine
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amounts and subtract where necessary.)
 ëetain Machine ëeplace Machine Net Income
Increase
(Decrease)

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Net Income
 Increase
ëetain Machine ëeplace Machine (Decrease)

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 $120,000 12 $100,000 12 $20,000 

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   Project
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B? C**DE1)F2DGC15.2%.
B?  CDE1F2DGC 18.2%.
B? 7 CDE1F2DGC17.6%.

Project Brown
Year Net Annual Cash Flow Cumulative Net Cash Flow
 %!1F!2 %! 
 *1%F!2 - 
! 1!F!2 % 
* *1F!2 % 
 *%1F!2 % 


B & (3.46 

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B?  CDE1F**2GC3.44 

Project Yellow
Year Net Annual Cash Flow Cumulative Net Cash Flow
 -%1%F2 -% 
 -*1*F2  
! -!1!F2 ! 
* %-1-F2 ) 
 -1F2 !% 

B & (3.40 

"!C-
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Project ëed
Item Amount Years PV Factor Present Value
#  

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B
   
     $ 10,706 
  Project
  Brown Yellow
Net Annual Cash Net Annual Cash
Year Discount Factor Flow PV Flow PV
 )% %!  %  -%  %-- 
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* %! *  !  %-  * 
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+  %  )%  !%  %) 
  
    )     
# 
    $2,206    $11,109 
Project Annual ëate of ëeturn Cash Payback Net Present Value

 3 3 3

 1 2 2

7  2 1 1

+ &
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Yellow


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