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Your company intends to make an investment of $1,000,000 in new foam filling equipment which is expected to generate $250,000 in revenue per year and

Your company intends to make an investment of $1,000,000 in new foam filling equipment which is expected to generate $250,000 in revenue per year and also plans to make another investment in mold making machine for an initial investment of $2, 000, 000 with an expected revenue of $150,000 per annum.

Using both the Payback method and NPV (rate of 10% and 7 years amortization period) advise which of these projects you will recommend.

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