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Belhaven University Blazer Corporation Net Present Value Essay

 

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 the payback period, initial ROI and net present value of this project?

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

3.If you were comparing this project to another potential project with an NPV of $18,000 and 14%, in which project would you invest? 

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