Assignment

Pyramid Printing Company's controller, Pete Roberts, and production manager, Darrell Dailey, once again discuss potential operational improvements that may improve results. After successfully implementing JIT and subletting the space, Pyramid was flush with cash. As a result, Darrell inquired whether it was time to purchase another press. Henry Russell, Pyramid Printing's sales manager, suggested that the market be tested to ensure the press would be full in terms of capacity prior to use.

Pete and Darrell then discuss their choice of decision model; Pete prefers net present value, and Darrell prefers internal rate of return. Consider the use of these models. Which model is better for use? Are there circumstances in which one must be concerned regarding the outcomes of these two decision models? Do these models both deliver the same level of accuracy for decision-making?

Required:

Half to one page only with at least 2 references.