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Yellow Duck Brewery Is Considering Two Similar Technology Investments to Help

question 31

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Yellow Duck Brewery is considering two similar technology investments to help track production.Investment (1)has an NPV of $245,000 and a payback period of 3 years.Investment (2)has an NPV of $250,000 and a payback period of 4.25 years.Which investment would you advise them to choose? Why?


Definitions:

Predatory

Relating to an organism that hunts and kills other organisms for food, characterized by adaptations that facilitate hunting and capturing prey.

Predator

An animal that naturally preys on others for food.

Parasite

An organism that lives on or in a host organism and gets its food from or at the expense of its host.

Host

An organism that harbors another organism (parasite, mutualistic symbiont, or commensal) often providing nourishment and shelter.

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