Capital Budgeting and Cost of Capital for Grainwaves Ltd

This document provides a financial analysis of the upgrade proposal for Grainwaves Ltd, including after-tax cash flows, payback period, net present value, and profitability index. It also discusses the impact of an increase in the growth rate of variable costs. Additionally, it covers the concept of EAA method for evaluating projects with unequal lives and the cost of capital for Grainwaves Ltd.