McCain has installed wind turbines and a wastewater treatment system at the Whittlesey plant.
These will provide alternative and sustainable sources of energy. However, the two projects
together cost nearly £15 million. McCain therefore needed to evaluate the expected financial
benefits of both projects before the company could decide to proceed:
• In the cash flow analysis of the two projects, the cash outflows are the initial investment
(in year 0) and the maintenance costs (in years 1 to 5).
• The cash inflows represent the savings that the two projects will produce in McCain’s energy
bill. They increase over time to reflect the potential savings arising from not paying increased
gas and electricity prices.