Changing the manufacturing process to a new type of technology is a management decision. For example, a drilling company bid on a contract at a mine I is worked at and obtained the specs that we needed to do the job successfully ie for the drill configuration. Consequently, their manager decided to remove the drill mast from the back of the drill truck and mount it on the side of the drill so the collar of the holes would not be too high for us to access and this was for horizontal drainhole drilling and it worked very well. This then represented a management decision. But it is well to remember that good suggestions for technical innovations often come from the hourly employees and when implemented can be very effective. Also, it is the hourly employees, in essence the workers that have to implement the management decisions and that takes much skill and hard work.
I believe this is true.
A fib is a white lie, meaning that it is not an important lie, but rather something small and meaningless that won't harm anyone. So if there are no dangers of causing troubles for other people, most people will usually lie in order to get what they want.
Sensitivity analysis. Where one variable is being tweaked a little to see the NPV, that is always sensitivity analysis.
<u>Solution and Explanation:</u>
<u>
Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=$10000
<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 10000
IRR 13%
=13% using IRR function in excel.
<u>Answer:3</u> IRR=17%
with salvage value
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 22000
IRR 17%
using IRR function in excel.