Do some of the criteria give different investment recommendations? Why? The acceptance of the project proposal is dependent on four different factors, referred to as "performance hurdles" in the case. In order for a project proposal to be considered, it must meet at least three of the following criteria in the engineering efficiency category: Earnings per share: The contribution to net income resulting from the project needs to be positive. This is determined by the average earnings per share (EPS) contribution of the project over its lifespan. Payback time: The maximum payback period was set at 6 years. This means the project would have a maximum of 6 years for the free cash flow of the project to amortize the initial investment for the project. Net Present Value: The present value of future cash flows of the project subtracted by the initial investment had to be positive. Internal Rate of Return: IRR was defined as the discount rate at which the present value of future cash flows would be equal to the initial investment. Management's criteria is that the IRR of engineering-efficiency projects had to be greater than 10%. Based on the changes made to

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Yes some of the criteria may lead to different investment recommendations because each criterion eva... View the full answer