Mr. O'Gratias, a top manager in his company, has been asked to consider the following mutually exclusive

Question:

Mr. O'Gratias, a top manager in his company, has been asked to consider the following mutually exclusive investment alternatives.

Answer the following questions.
(a) Use the conventional B/C ratio to evaluate the alternatives and make a recommendation.
(b) Use the modified B/C ratio to evaluate the alternatives and make a recommendation.
(c) Use a present worth analysis to evaluate the alternatives and make a recommendation.
(d) Use an internal rate of return analysis to evaluate the alternatives and make a recommendation.
(e) Use the simple payback period to evaluate the alternatives and make a recommendation.

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...