Calculate the net operating cash flows for both projects, using appropriate depreciation schedules (each group will need to find the appropriate schedule to use. Include that information in the group presentation). Consider that the case provided your group was the Best of the Best scenario. Consider that a More Realistic scenario would be for only 19 additional firings, but the revenue would be $7,750 . The other expenses ( except depreciation) would increase by 2%. A Bad case would be only 14 additional firings, the price drops to $7,650, but in addition, the kilns do not handle the mass production as well and the waste loss increases the Cost of goods sold by 8%. The worst case scenario includes all of the Bad Case, but the price of gas increases 10%, and insurance increases by 2% of the purchase price of the kilns per year.


