5. You are working with the CFO's office to help with capital budgeting and have been asked to evaluate 3 proposals for projects to improve the painting line in your factory. Of course, you could also decide to do nothing and invest capital budget funds in another area. Each project alternative has a different cashflow and you have calculated the following NPVs: • Project A has an NPV of -$47,000 • Project B has an NPV of -$11,500 Project C has an NPV of - $2,750 What recommendation will you give the CFO regarding these alternatives and why?

5. You are working with the CFO's office to help with capital budgeting and have been asked to evaluate 3 proposals for projects to improve the painting line in your factory. Of course, you could also decide to do nothing and invest capital budget funds in another area. Each project alternative has a different cashflow and you have calculated the following NPVs: • Project A has an NPV of -$47,000 • Project B has an NPV of -$11,500 Project C has an NPV of - $2,750 What recommendation will you give the CFO regarding these alternatives and why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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