Question: Analyze Capital Projects and Provide Recommendations Randolph Inc. is considering the following three capital project proposals. The company initially screens projects considering ( 1 )

Analyze Capital Projects and Provide Recommendations
Randolph Inc. is considering the following three capital project proposals.
The company initially screens projects considering (1) a payback period of 2.5 years or less and (2) a positive net present value using a discount rate of 10 s6.
REQUIRED
a. Compute the payback period for each proposal and determine whether each proposal passes the initially screening based on your results.
Note: Round your answer to two decimal places. Enter 1.251 as 1.25; enter 1.255 as 1.26.
b. Compute the net present value for each proposal and determine whether each proposal passes the initially screening based on your results.
Note: Round your answer to the nearest dollar.
c. Provide a recommendation on whether to imvest in proposal A, B, or C based only on the compary's screening considerations.
the internal rate of return of each proposal, and assuming that the company must choose one of the projects to pursue.
Note: Round your answer to two decimal places. Enter 10.251% as 10.25%, enter 10.255% as 10.26%.
 Analyze Capital Projects and Provide Recommendations Randolph Inc. is considering the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!