Evaluation of Options for Maximum Cash Flows
VerifiedAdded on 2022/12/15
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AI Summary
This document evaluates the options available for generating maximum cash flows and provides recommendations based on the analysis. The analysis is done using Net Present Value (NPV) as the base for evaluating the options. Option 2, which involves licensing the patented recycling method to another company, Clean World Ltd, is found to have the highest NPV. However, it is also recommended to search for a cheaper source of finance to consider option 1. Factors such as sales forecast, risk tolerance, and sunk costs should also be considered before making a decision.
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