there are 2 projects:

YEAR	PROJECT A $	PROJECT B $
0	(500)	(500)
1	70	100
2	80	0
3	90	400
4	100	0
5	110	100
6	120	200
7	130	0
8	140	100
9	150	0
10	150	300

Required Tasks:

1. You are required to calculate the PP, ARR, NPV, IRR, and Discounted PP of each project. (50%).
2. Discuss the detailed advantages (strengths) and disadvantages (weaknesses) of each method of investment appraisal technique. (30%).
3. You are required to comment on the stability of the projects. (10%).
4. Show the ranking of the projects using all the above criteria, and as a professional accountant, critically advise your client on the best investment action, on whether to invest in project A or B. (10%)

Answer rating: 100% (QA)

SOLUTION To solve the first part of the question we need to calculate the various investment appraisal techniques for both Project A and Project B Payback Period PP The payback period is the amount of ... View the full answer