Question: Compute and compare each option's net present value and payback period using the discount rate of 7%. Purchase an additional CNC machine for cash, Finance

Compute and compare each option's net present value and payback period using the discount rate of 7%.

Purchase an additional CNC machine for cash,

Finance the purchase of an additional CNC machine, or

Add a third shift (a night shift) to utilize the two CNC machines better Peregrine already owned.

French considered the details of each option, keeping in mind that for long-term projects, he would use a discount rate of 7%.

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