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You have completed case 1 with your group, now it is time to complete this case by yourself. Assume the role of Consultant to Mr.
You have completed case 1 with your group, now it is time to complete this case by yourself. Assume the role of Consultant to Mr. Steve Twynstra, owner of Twilight Acre Farms. Prepare a report that highlights appropriate recommendations for a capital investment decision (Hint-know your audience. You do not need to give Steve background company information, but you should identify the key issues to him). At a minimum, your report should address the following: Quantitative analysis: Perform quantitative analysis for the new machine opportunity to determine payback period, NPV and IRR. (hint- calculations are best presented through use of an Exhibit(s), referring to the Exhibit(s) in the body of the report). Consider the results. NOTE - you may want to start your rough work by making a list of all relevant costs. For a cost to be relevant, it must differ between the alternatives. In this case the alternative to buying the new is keeping the old. Qualitative analysis: Besides the quantitative analysis, any non-financial factors should be considered in this case, this will help you establish criteria for making the decision. (eg. Consider the impact on workers? Impact on custom business? Etc.) Detailed consideration of
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