The following table contains information about four projects in which
The following table contains information about four projects in which Elsmaili Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about their potential project.
Requirements
1. Rank the four projects in order of preference by using the
a. Net present value.
b. Project profitability index.
c. Internal rate of return.
d. Payback period.
e. Accounting rate of return.
2. Which method(s) do you think is (are) best for evaluating capital investment projects in general? Why?
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