FIN 320 Week 5 Learning Team Assignment Capital Investment Decisions Case Study and Presentation - Lathe Investment Decisions Net Present Value(NPV

FIN 320 Week 5 Learning Team Assignment Capital Investment Decisions Case Study and Presentation

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Lathe Investment Decisions
Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period
Lathe A has a higher NPV than Lathe B and would therefore be preferred when using NPV to make this decision The payback period for Lathe B is 3.65 years
Lathe B would be preferred over Lathe A because it has a higher internal rate of return (IRR).
Lathe A would be preferred over lathe B because it has a higher net present value

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