Mary Martell is a finance intern at a big corporation that was given the task to evaluate the profitability of a new, st

[answerhappygod]

Mary Martell is a finance intern at a big corporation that was
given the task to evaluate the profitability of a new, state of the
art production line. She found that the project has a negative NPV.
This is bad news for Sarah Pearl, who is the head of the
manufacturing department and the proponent of the project. Mary
delivered the news to her boss, Winston Rodriguez, who called Sarah
and gave her the news: “Hello Sarah this is Winston from the
finance department. The new inter confirmed what we all knew in the
department: the net present value of your proposal is negative and
therefore we need to reject the project. To be honest, we already
had reached that conclusion but we wanted an outside opinion and
gave Mary the task of evaluating the project. Sorry, but the
project is a no.”
Sarah later sent an email to Winston: “Winston, please, don’t
kill my project.” She then asked the following questions: “Why is
the NPV so important? Why don’t we use the average accounting rate
of return instead for this project? Are there other profitability
measures that we can use? If so, can you please describe them? Why
don’t we use one of them to justify the purchase of the new
machine? And finally, how are all these profitability measures used
across the globe?"