Montano Manufacturing is considering the following capital investment proposals. Montanos requirement criteria include a maximum payback period

Montano Manufacturing is considering the following capital investment proposals. Montano’s requirement criteria include a maximum payback period of five years and a required rate of return of 12.5%. Determine if each investment is acceptable or should be rejected ( ignore qualitative factors). Rank the acceptable investments in order from most desirable to leastdesirable.

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Project Payback NPV IRR Profitability Index 3.15 years 4.20 years 2.00 years 3.25rs 5.00 years s 0 12.5% 1.00 10,250 42,226 10,874) 36,251 14.096 2.86 13.0% 1.54 14.2% 1.92 8.5% 0.75