Question: You have been asked to evaluate two projects for your company. One is deciding on the purchase of a new computer chip processing machine that

You have been asked to evaluate two projects for your company. One is deciding on the purchase of a new computer chip processing machine that will have a payback of

3

years, NPV of $

32, 500

and an IRR of

7.9 % .

The second project is building a new warehouse that will have a payback of

3

years, NPV of $

39, 500

and an IRR of

8.1 % .

The company has a required rate of return of

7.1 % .

How would you best communicate your decision to proceed?

You have been asked to evaluate two projects for your company.

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