A For each of the investment alternatives calculate the i Net
a. For each of the investment alternatives, calculate the
i. Net present value
ii. Payback
iii. Accounting rate of return (on an average basis, not per year), and
iv. Recommend, with reasons, which of the investment proposals should be approved.
b. Compare and contrast net present value, payback and accounting rate of return as methods of capital investment appraisal. What are the strengths and limitations of each method?
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