The methods used to analyze potential investments

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Reference no: EM132017260

1. Present one of the methods used to analyze potential investments, how the method is calculated, and the advantages and disadvantages in using the specified method.

2. Explain how net present value (NPV) is calculated and its application to capital investment decisions, and projection and evaluation.

3. Massa Machine Tool expects total sales of $16,000. The price per unit is $6. The firm estimates an ordering cost of $9.96 per order, with an inventory cost of $.84 per unit. What is the optimum order size? (Round your answer to the nearest whole number.)

Reference no: EM132017260

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