Compute the npv of each project

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Reference no: EM132083692

a) The operations team at Hairpin Engineering Inc. was evaluating the feasibility of the following two projects that were required for the business::

Milling Project: Investment of $260,000 in an automatic milling machine that would reduce wastage by $180,000 in the first year and $120,000 in the second year. Grinding Project: Investment of $120,860 in an automatic grinding machine that would reduce wastage by $85,000 in the first year and $116,000 in the second year.

Compute the NPV of each project and determine if the team should accept or reject them if the cost of capital is 12%.

Reference no: EM132083692

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