2 comments

Rephrase following 2 comments:

1Thank you for your positive feedback on our presentation. We appreciate your recognition of our detailed analysis, especially regarding the situation with the CNC machine and the decision-making process.

We’re glad you agree with our choice, as presented on slide #15, to buy a new CNC machine with cash. The decision to base our recommendation on net present value (NPV) aligns with accounting principles and helps ensure that we focus on maximizing long-term financial benefits to the company. As he has pointed out, using long-term debt for financing while offering immediate liquidity entails additional economic costs and risks, making it a less attractive option. We also share his view that adding a third shift, despite using the current machines more fully, would not be sustainable or efficient for the company in the long run.

We’re grateful for the time you’ve invested in reviewing our presentation. Your detailed calculations provided in slides 12, 13, and 16 have significantly enhanced the clarity of our analysis. We Appreciate your kind words and are delighted that our work has been completed and well supported.

2Thank you for your thoughtful feedback on our presentation. We are glad that you found our analysis both insightful and detail-oriented. Your understanding of the options discussed on slide 8—particularly outsourcing and upgrading existing machines—highlights the key considerations we aimed to present.

We agree that outsourcing during bottlenecks or machine breakdowns offers a flexible, short-term solution that can help Peregrine meet deadlines without significant capital investment. As you mentioned, the risks associated with this option, such as reliance on external vendors and potential quality control issues, are important factors to weigh.

Upgrading existing machines, as you noted, presents a balanced approach by increasing productivity while minimizing the upfront costs of new equipment. However, as we pointed out, the long-term capacity demands of the company may eventually surpass what these upgrades can offer, making this option more of a stopgap solution.

We appreciate your emphasis on the importance of considering these alternative strategies before committing to a large financial investment. Our goal was to offer a comprehensive analysis of both short- and long-term solutions, and we’re pleased that this message resonated with you.

Thank you once again for your kind words and detailed review of our presentation.