Module 4 Assignment: You, as the project manager, have been asked to recommend which project your company should move forward with. Your company has a total of $350,000 in debt at 5% interest and $400,000 in equity at 12% rate of return. Project 1 is to build a medium-sized garage for a client over three years. The client will immediately pay $10,000 as a deposit, $40,000 the year after, and $85,000 in the final year. Your company has a small loan of $10,000 with 5% interest towards this project that must be paid back in the end. $50,000 of materials will be bought all at once in the first year and a piece of equipment that requires a $10,500 down payment and yearly payments of $1500 following. Labour for the project is $15,000 immediately and $6000 per year after. Administration costs, including taxes, are $4000 for set up and $1000 per year after. Project 2 is the purchase and installation of a new piece of equipment for your company with a life span of 3 years. The equipment costs $50,000 upfront and $9,000 to run in the following years. You have the same funding sources (loan and investor's equity) and administration costs as Project 1. The equipment will save your company $25,000 beginning the year after installation and has a salvage value of $12,000 at the end of its lifespan. Question 1 20 Points Organize a cash flow forecast for each project beginning at time 0. Make sure to include the net income for each year. Project 1 Year 0 Year 1 Year 2 Beginning cash Cash Receipts Client Payments $Blank 1 $Blank 2 $Blank 3 Investor Proceeds Other $Blank 4 Total $Blank 5 $Blank 6 $Blank 7 Cash Payments Materials $Blank 8 Down and monthly payments for equipment $Blank 9 $Blank 10 $Blank 11 Labor Salary $Blank 12 $Blank 13 $Blank 14 other $Blank 15 $Blank 16 $Blank 17 Total $Blank 18 $Blank 19 $Blank 20 Net $Blank 21 $Blank 22 $Blank 23 Project 2 Year 0 Year 1 Year 2 Year 3 Beginning cash Cash Receipts Savings (revenue) $Blank 24 $Blank 25 $Blank 26 Investor Proceeds Other $Blank 27 $Blank 28 Total $Blank 29 $Blank 30 Cash Payments Materials $Blank 31 $Blank 32 $Blank 33 $Blank 34 other $Blank 35 $Blank 36 $Blank 37 $Blank 38 Total investment $Blank 39 Net $Blank 40 $Blank 41 $Blank 42 $Blank 43 Blank 1 Blank 2 Blank 3 Blank 4 Blank 5 Blank 6 Blank 7 Blank 8 Blank 9 Blank 10 Blank 11 Blank 12 Blank 13 Blank 14 Blank 15 Blank 16 Blank 17 Blank 18 Blank 19 Blank 20 Blank 21 Blank 22 Blank 23 Blank 24 Blank 25 Blank 26 Blank 27 Blank 28 Blank 29 Blank 30 Blank 31 Blank 32 Blank 33 Blank 34 Blank 35 Blank 36 Blank 37 Blank 38 Blank 39 Blank 40 Blank 41 Blank 42 Blank 43