Capital investment.

Write your responses to these questions in a Word document. Your paper should be a minimum of two pages in length. You are not required to support your assignment with outside sources; however, if you do, adhere to APA Style when creating citations and references.

Answer preview

The decision is to purchase the old backhoes. This decision is based on the organization’s emphasis on cash flow in planning for capital investments. Organizational policies are significant since they define strategic objectives. Purchase decision from a financial perspective is also important to give owners the highest value for the investment. There are better financial outcomes in the purchase of an old machine than the new one. For instance, the Net Present Value (NPV) is $119841 for the old machine and $94277 for the new machine.

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