The Dilemma at eUREKA.com Comparison of Capital Budgeting Techniques eUREKA am is trying to decide between two alterntive machines. They are aware that they have several methods to evaluate and compare the alternatives. They give the task of evaluating the two alternatives using different techniques to Telga and Aisha. They work a day and invite the department for a meeting the next morning. That morning all department members gather together to go over the problems from beginning to the end. Tolga and Aisha go over their calculations step by step trying to explain to the members of the department the caveats of the methods and how they should be used if chosen as the decision making criteria This put the slide with the following cash flows to the screen and ask for everyone to take a yerv careful look at the numbers Year Simtotech Valariumm -800000 600000 400000 300000 200000 200000 0 1000000 350000 400000 500000 650000 700000 4 In looking over the documentation prepared for two machines, it appears to you that the simtotech technology would require extensive development before it could be implemented whereas the valarium technology is available "off-the- shelf." What impact might this have on your analysis? 8