3. (50 pts) You are evaluating four different process improvement suggestions from company employees for...
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3. (50 pts) You are evaluating four different process improvement suggestions from company employees for a product line you plan to use for 10 years. Initial investment and net annual cash flows for each alternative are in Table 3.1. Table 3.1: Employee improvement suggestions Improvement Suggestions $2,500|54,000| 45,000|-$7,000 $400 $925 $1,125 $1,425 Initial Investment Net annual cash flow (.e. annual revenue minus Your company requires an internal rate of return analysis to compare alternatives and make a recommendation regarding which improvement suggestion, if any, the company should use. Company minimum attractive rate of return is 10%. a) Based on Step 1 of your analysis, are any improvement suggestions eliminated based on your calculation of individual project internal rate of return? b) Based on internal rate of return analysis, which improvement suggestion, if any, do you recommend and why
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