7.6 Given the necessary data, apply the methods listed in 7.5 to evaluate potential capital investments and make the optimal decision for the business

ASSIGNMENT 2 5% of total mark Evaluate the options on the following slide from the perspective of NPV, IRR, and payback period Choose one option, and give your rationale 7.6 Given the necessary data, apply the methods listed in 7.5 to evaluate potential capital investments and make the optimal decision for the business

Option B: An initial cash investment of $5,442,573. Year 1 cash inflows of $1,500,000, increasing by 20% a year and ending in year 6. WACC of 12% 7.6 Given the necessary data, apply the methods listed in 7.5 to evaluate potential capital investments and make the optimal decision for the business