Considering investing in piece of equipment

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The Blazer Corporation is considering investing in a piece of equipment that will enable them to produce a new product for a new market. Using the information provided, calculate the specified items and answer the following questions:

1. What are this project's payback period, initial ROI, and net present value?

2. Would you recommend investing in this project? What facts and factors went into your decision and why?

3. If this project were compared to another potential project with an NPV of $18,000 and 14%, which project would be the best investment?

4. Now, think about risk management. What uncertainties about the future might be considered about not going ahead with this project? Why?

Reference no: EM133240149

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