Peregrine.xlsx - PEREGRINE The CNC Machine Decision 1 a Purchase a new CNC machin with cash Weaknesses Not to have the cash readily available Strengths

Peregrine.xlsx - PEREGRINE The CNC Machine Decision 1 a...

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PEREGRINE: The CNC Machine Decision1.3.a. Purchase a new CNC machin with cash- Weaknesses: Not to have the cash readily available- Strengths: If there is a breakdown, work will continueb. Finance the purchase of a new CNC machine- Weaknesses:The purchase cost of the machine is lower than in option 1.- Strenghts: If there is a breakdown, work will continue. Also, it had the necessary cash on hand, sufficient space and right employees in place to execute the plan.c. Add a third shift- Weaknesses: major safety and supervision challenges- Strenghts: it could be done at a low cost.The best option regarding the Net Present Value is to add a third shift, but the payback period of this project is much longer than the other options. For that, to finance the purchase of a new CNC machine is the best option because it has the largest Net Present Value amount between Option 1 and 2, and also, the shorest period for the Payback: not even 4 days.
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OPTION 1. PURCHASE A NEW CNC MACHINE WITH CASHCash inflows6,640,000Computation
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