An improvement to the process in a men's shirt factory will cost $1 million but will result

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An improvement to the process in a men's shirt factory will cost $1 million but will result in net cost savings of $300 000 annually for the next 10 years.
a. If funds are worth 10 per cent, what is the NPV for the investment?
b. If the process improvements turn out to cost $1.5 million, are the process changes still worth making?
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Accounting Business Reporting For Decision Making

ISBN: 9780730302414

4th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver

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