Answer:
(i)
Table 1: Statement for the proposed Buddy capital investment after tax cash flows
(In Million AUD)
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Number of unit sold
16
16
16
16
16
16
16
16
16
16
selling price (per unit)
1.25
1.28
1.3