a$)$ Construct

b$)$ Construct Investment Cash Flows

c$)$ Calculate the Free Cash Flows

d$)$ Evaluate the project, using NPV and IRR methods

Extra exercise $1$

A company is considering an investment to expand production and sales

Future proceeds and costs, as a consequence of the investment

$\backslash$table$[[$year$,\backslash$table$[[$unit produced$],[$& sold$]],,$price,,ost,Fixed costs$],[1,70,000,$$$,150,$$$,80,500,000],[2,110,000,$$$,160,$$$,85,550,000],[3,90,000,$$$,170,$$$,90,600,000]]$

Depreciation: Straight line, $3$ years, i$.$e$,33\mathrm{.}33\%$ of the total investment per year

$\backslash$table$[[$Investment:$,$$$,9,600,000$