Calculate the NPV and IRR for the proposed Pathrite system. Can Eloise make a compelling case for the investment?

What will be an ideal response?


Investment in the Pathrite system based on the variables provided offers a positive net present value of $2.7 million and IRR of 25% just on the basis of cost savings. As this doesn’t even account for additional revenue generation potential that the system might provide, Eloise is certainly in a position to make a compelling case for the investment.



Business

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