Homework answers / question archive / Potato Supreme predicts the following cash flows from operation, net of income taxes (in thousands) for each customer account for the next 5 years:   2014 2015 2016 2017 2018 Shine Stores Always Open $1,450     690 $1,305  1,160 $1,175  1,900 $1,058  2,950 $ 950 4,160   Assume that the company is using NPV method with 10% RRR

Potato Supreme predicts the following cash flows from operation, net of income taxes (in thousands) for each customer account for the next 5 years:   2014 2015 2016 2017 2018 Shine Stores Always Open $1,450     690 $1,305  1,160 $1,175  1,900 $1,058  2,950 $ 950 4,160   Assume that the company is using NPV method with 10% RRR

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Potato Supreme predicts the following cash flows from operation, net of income taxes (in thousands) for each customer account for the next 5 years:

 

2014

2015

2016

2017

2018

Shine Stores

Always Open

$1,450

    690

$1,305

 1,160

$1,175

 1,900

$1,058

 2,950

$ 950

4,160

 

Assume that the company is using NPV method with 10% RRR. Which customer is more valuable to Potato Supreme? Show your calculation!