What is the annual operating cash flow of the new GPS
operating cash flow of the new GPS system?
What is the after-tax cash flow of the GPS system at disposal?
What is the NPV of the new GPS system?
Should Grady Precision Measurement Tools add the GPS system to its set of products? (Select the best response.)
No, because the NPV is negative which means the projected annual rate of return on the project is less than the cost of capital.
Yes, because the project will generate enough wealth to give investors an adequate yield.