Options such as the automation technology that provide strong positive cash flows in the near-term are inherently attractive, but the full range of NPV analysis will indicate whether such a decision is best for the company in the long run. In this case, the best decision in the short run is also the best one in the long run. Guillermo will naturally want to undertake a sensitivity analysis in order to confirm the findings of his NPV and IRR calculations. At this point, Guillermo will want to subject his assumptions to testing and will also want to focus on ensuring that the strategy is implemented in a way that allows the cash flow projections to prove accurate. Works Cited:

Llano-Ferro,...

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Baker, S. (2000). Perils of the internal rate of return. University of South Carolina. Retrieved November 9, 2010 from http://hadm.sph.sc.edu/courses/econ/invest/invest.html

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