1) Develop Eloise Moore’s calculations:
a) The cost of EIS capital
b) The NPV and IRR for the most likely operating savings from capital expenditure
c) The expected NPV and IRR, given the probabilities and cash flows anticipated by Bob Studz
d) The payback and discounted payback periods.
2) Discuss in the group and come up with the rationale what data should Eloise Moore use, and how
should these data be presented to Bob Studz?