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You present your findings to your director (from whom you are hoping to get approval for project funding) Your director says This is a great
You present your findings to your director (from whom you are hoping to get approval for project funding) Your director says "This is a great project. It costs $6,000 to take on and it will return $1,800 per year ($2,500 in savings - $700 in additional tissue replacement costs) for 5 years. That's a return of... hmm.. let me think.(1800*5)/6000..that's the same as 9,000/6,000... and that's 150%. That's a great return!" Do you agree with your director's calculation of the project's return? Does it agree with your IRR calculation? If not, what is the director forgetting about? Agree! That math looks sound. O Disagree! That math doesn't include other important considerations
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