Evaluate the technology proposed by Shawn Paschal. What is your recommendation on the adoption of this technology?
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Question:
Evaluate the technology proposed by Shawn Paschal. What is your recommendation on the adoption of this technology? Explain your reasoning.
Shawn Paschal has been working on an advanced technology for use in the green fuel production at King Fisher Aviation. He is almost finished with the technology and anticipates the first cash flow from the technology to be $200,000 received 2 years from today. Subsequent annual cash flows will grow at 4.5 percent in perpetuity.
Here are my findings.
According to my calculations the value one period before the first payment is just under $285,714.29 more than today's present value.
Do you recommend moving forward at this time on this investment? Explain why or why not.
Expert Answer:
Based on the information provided I would recommend moving forward with the adoption of the technolo... View the full answer
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