Conclusion Essay Example | Topics and Well Written Essays - 250 words - 10

Conclusion - Essay Example Based on the expected value, manufacturing of pipes is more favorable despite not taking into account positive side influences producing additional tubes, which is reaped from the present manufactured pipes. The decision to manufacture pipes is mainly based on the NPV of the projects under specific conditions. In the scenarios, NPV of undertaking the project reduces equating it to the corresponding NPV of purchasing the pipes. Moreover, this results in the decrease of incremental cash flow for the project to zero thus making the strategy unfeasible (Dayananda, pp.124-178). Lowering the price by the supplier changes the NPV to change by $ 100,000. Therefore, it is profitable for Great Lakes Pipe and Tube to purchase the pipe from the underlying supplier at the expense of manufacturing 10 inches and corresponding 12-inch pipes. Nevertheless, the percentage development of the GLPT in production of the 3, 6 and 8-inch pipes will result in lowering the cost of purchasing the 10 and 12-inch