CAPITAL INVESTMENT APPRAISAL

Hi all,

I just an exam at not so long ago, one of the questions was to work out the payback, NPV, ROCE. I can’t remember the exact details of the question but in summary we were told that a company was thinking about changing there transportation policy of buying their own vehicles instead of paying an external transportation provider.

We were then given a list of cash OUTFLOWS, however there was no CASH INFLOWS.

So in general terms how would you go about answering a question like this?