Coyote and Bird run a fireworks company and are trying to decide whether or not to purchase new equipment to streamline the production process. Coyote argues that they should use IRR as the basis for making the decision, while Bird argues they should be using the NPV. They ask you, as the chief financial officer of the company, your thoughts on the capital budgeting decision. What do you tell them?

Answer rating: 100% (QA)

Both the methods of capital budgeting have their merits demerits As a chief financial officer I will ... View the full answer