Question: WIL PROJECT CASE STUDY ORIENTATION WEEK 1 Option A: 5800 Yonge St. N Year Expected Cash flow Comment 0 2019 -$ 2,500,000.00 Includes Working Capital

WIL PROJECT CASE STUDY ORIENTATION WEEK 1 Option A: 5800 Yonge St. N Year Expected Cash flow Comment 0 2019 -$ 2,500,000.00 Includes Working Capital 1 2020 $ 255,000.00 2 2021 $ 100,000.00 3 2022 $ 200,000.00 4 2023 $ 300,000.00 5 2024 $ 450,000.00 6 2025 $ 550,000.00 7 2026 $ 156,000.00 8 2027 $ 700,000.00 9 2028 $ 780,000.00 10 2029 $ 1,000,000.00 Includes Salvage Value Cost of Capital: 12% Option B: 1136 Avenue Rd. N Year Expected Cash flow Comment 0 2019 -$ 4,000,000.00 Includes Working Capital 1 2020 $ 408,000.00 2 2021 $ 800,000.00 3 2022 $ 320,000.00 4 2023 $ 960,000.00 5 2024 $ 720,000.00 6 2025 $ 880,000.00 7 2026 $ 249,600.00 8 2027 $ 500,000.00 9 2028 $ 800,000.00 10 2029 $ 1,600,000.00 Includes Salvage Value Cost of Capital: 12% Your task is to analyze the above capital projects, and reach a capital decision based on (IRR, NPV, and Payback). In order to finance this project, the company has three options: Line of Credit Secured Loan Corporate Credit Card

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!