Businesss leadership team

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Reference no: EM13850424

A department manager is proposing a new project to you to take to your business’s leadership team. He is proposing a $210,000 new piece of equipment that will generate $85,000 in revenue for 4 years. Your company’s hurdle rate is 9% and inflation is estimated to be 2%.

A) What is the payback period?

B) What is the NPV of this project?

C) What would you recommend to top management about whether or not to pursue this project and why?

Reference no: EM13850424

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