2024 – Question 9 In looking over the documentation prepared by the two project teams it appears

Finance – 2024

 

 

 

 

Question 9:In looking over the documentation prepared by the two project teams, it appears to you that the synthetic resin team has been somewhat more conservative in its revenue projections than the epoxy resin team. What impact might this have on the Payback Period, NPV, and IRR calculations for the synthetic resin project? How does this complicate comparing the synthetic resin and epoxy resin projects? Is being conservative in revenue projections a good practice? What adjustments might be made?

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