Question: Explain this in short bullet points Given the assumptions, EAS appears to be (slightly) better than lighting, and hardware EAS appears to be significantly better
Explain this in short bullet points "Given the assumptions, EAS appears to be (slightly) better than lighting, and
hardware EAS appears to be significantly better than full-line EAS in terms of NPV
and IRR. In practise, they chose 5 full-line stores and 20 hardware stores as "tests"
and installed EAS. This cost between $1.4 and $1.5 million. The remaining $5.5
million was spent installing new lighting in 147 stores at an estimated cost of
$37,400 per store. Following a careful examination of all financial parameters, detailed calculations,
and in-depth analysis, it is possible to conclude that both projects have a positive
Net Present Value, IRR greater than WACC, and Profitability Index greater than 1."
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