Bamboo plc is considering the selection of one of a pair of mutually exclusive investment projects?

bamboo plc is considering the selection of one of a pair of mutually exclusive investment projects. both projects would require the purchase of machin

bamboo plc is considering the selection of one of a pair of mutually exclusive investment projects. both projects would require the purchase of machinery with a life of five years.
project 1 would generate annual cash flow ( receipts less K200,000) the machinery would cost K556,000 and have the scrap value of K56,000.
project 2 would generate annual cash flow of K500,000. the machine would cost K1,616,000 and have a scrap value of K301,000. both projects would required a working capital investment of K10,000 throughout their operational lives. bamboo plc uses the straight line method of depreciation, its cost of capital is 15%per annum.

required :
a) outline non financial objectives which may arise as a result of bamboo plc undertaking one of the projects

b) calculate for each project using the information in the case study above:
i) NPV
ii) IRR

c) which of the project should be selected under each method, justify your answer with reasons

or:bamboo plc is considering the selection of one of a pair of mutually exclusive investment projects. both projects would require the purchase of machinery with a life of five years.project 1 would generate annual cash flow ( receipts less K200,000) the machinery would cost K556,000 and have the scrap value of K56,000. project 2 would generate annual cash flow of K500,000. the machine would cost K1,616,000 and have a scrap value of K301,000. both projects would required a working capital investment of K10,000 throughout their operational lives. bamboo plc uses the straight line method of depreciation, its cost of capital is 15%per annum.required :a) outline non financial objectives which may arise as a result of bamboo plc undertaking one of the projects b) calculate for each project using the information in the case study above:i) NPVii) IRR c) which of the project should be selected under each method, justify your answer with reasons


or:i will give you the maths sometime tommorow, can not now. but for question a) isn't there some more detail, i mean some details of each project. i could think of some qualitative answers but it would be difficult with no details

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