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Case Study Lara Vs Carla

Case Study Lara Vs Carla . Dr Clive Vlieland-Boddy. Chap V : Making Investment decisions V. NPV or IRR?. Application / Case : Lara vs Carla – 2 projects consisting in investing in a machine that will provide cost savings (increasing productivity). Expected FCF are as follow :.

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Case Study Lara Vs Carla

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  1. Case Study Lara Vs Carla Dr Clive Vlieland-Boddy

  2. Chap V : Making Investment decisionsV. NPV or IRR? • Application / Case : Lara vs Carla – 2 projects consisting in investing in a machine that will provide cost savings (increasing productivity). Expected FCF are as follow :

  3. Chap V : Making Investment decisionsV. NPV or IRR? • Questions : which project should we choose? Use NPV, IRR, Profitability indexes and payback period as criteria to make your decision

  4. Chap V : Making Investment decisionsV. NPV or IRR? • Answer  NPV criteria : Carla wins shortly… (difference is only 37.8 €!)

  5. Chap V : Making Investment decisionsV. NPV or IRR? • IRR : Lara wins

  6. Chap V : Making Investment decisionsV. NPV or IRR? • Profitability index and Payback : still LARA

  7. Chap V : Making Investment decisionsV. NPV or IRR? • Prof index, Payback : still LARA

  8. Chap V : Making Investment decisionsV. NPV or IRR? • Conclusion :

  9. Chap V : Making Investment decisionsV. NPV or IRR?

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