Option NPV of the Cash Flows Initial Investment Year 1 Year 2 Year 3 Year...

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Option NPV of the Cash Flows Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
A Project A: 25 Employee Facility -2,000 -200 -300 -400 200 400 1,000 1,000 1,000 1,000 1,000
B Project B: 40 Employee Facility -2,500 -200 -200 100 400 400 1,500 1,500 1,500 1,500 1,500
C Project C: 75 Employee Facility -3,000 -300 -400 -100 600 700 2,000 2,000 2,000 2,000 2,000
D Equipment 1- Fully Automatic -1,500 -100 100 200 400 200 800 800 800 800 800
E Equipment 1- Semi Automatic -1,000 -50 -100 200 200 300 600 600 600 600 600
F Equipment 1- Manual -750 150 150 150 150 150 750 750 750 750 750
G Equipment 2- Standard -800 -175 200 250 250 300 700 700 700 700 700
H Equipment 2- Top of the Line -1,500 -100 275 325 325 325 1,500 1,500 1,500 1,500 1,500
I Equipment 3- 3-Man Machine -700 -200 -150 250 350 350
J Equipment 3- 2-Man Machine -600 -175 -100 175 175 175
K Equipment - 5-Man Machine -750 -300 -200 300 400 400

Construct and recommend between three and five metrics to measure the performance of the new operating strategy. At least one metric should reflect dividend policy as it relates to rewarding shareholders.

Prepare an executive summary describing your recommendations for each project and the overall cost, net cash flows, and expected returns of the operating configuration that you recommend. Be sure to justify your recommendations in terms of the investment criteria applied in Step 3 above. Be sure to report the full cost of the facility as it is configured per your recommendations. Present and justify your operating strategy performance metrics.

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