Loading subjects
Internal factors in a global business · Part 5 of 8
1 exam-style question with model answers, plus 16 quick multi-choice questions — every question on this part of the standard, grouped by the 5 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
An invented Dunedin engineering exporter can buy Machine X ($240,000, payback 2.0 years, NPV +$61,000) or Machine Y ($310,000, payback 3.4 years, NPV +$96,000). Machine Y uses 40% less electricity and produces a more consistent finish. The business has recently borrowed heavily.
Which machine would you recommend? Justify your recommendation, including any new information.