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Assume you are trying to convince the CFO that you need to purchase a large piece of expensive equipment for your department. Discuss the type
Assume you are trying to convince the CFO that you need to purchase a large piece of expensive equipment for your department. Discuss the type of information that is needed to evaluate a capital investment project. what different financial tooks or formulas can be used to evaluate the financial impact of a capital in estment. Further, assume you have two piece of equipment you are considering, which are mutually exclusive both require a $10,000,000 investment as presented beloe. if your discount rate is 12 percent, what is the net present value for Project A and Project B and progitability index for Project A and Project B. Interpret your calculatiins for management.
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