Figures of Merit
As we are preparing to use the Figures of Merit to evaluate our team capital investment projects, please discuss the following: What makes a Net Present Value acceptable and why do we use it in project evaluation? What does the Benefit Cost Ratio tell you about a project and how would you explain a BCR of 1.76 as a profitability index? What is the Internal Rate of Return and why do you want a project’s discount rate to be lower? How did Nina Sanders revise her project plan in Chapter 7 and why did she make each revision?