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Your company is considering investing in a process improvement that would require an initial capital investment of $300 K. The projected revenue over the next

Your company is considering investing in a process improvement that would require an initial capital investment of $300 K. The projected revenue over the next five years are as follows:

Year

Revenue ($K)

1

90

2

90

3

90

4

90

5

90

The company can always leave the capital investment in the stock portfolio, which is projected to yield 10% p.a. over the next five years.

Should the company invest this amount ($300 K) in the process improvement or leave it in the stock portfolio?

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