EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
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Chapter 11.7, Problem 22P
Summary Introduction

Interpretation: Reasons for which a traditional Net present value (NPV) analysis is notconsidered as an appropriate method of evaluating the desirability of purchasing an FMS.

Concept Introduction:

Net present value refers to the present value of the cash inflow and the present value of cash outflow during a particular period of time. Aflexible manufacturing system (FMS) refers to the production technique that is designed to easily adapt to the changes in the quality and quantity of goodsthat occurred during the manufacturing process.

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