Lost Dogs is trying to determine whether they should build kennels to provide boarding services to

customers to cross subsidise their dog rescue service. They have performed the calculations and found

the following:

a. Explain each method listed above and what it tells the business, list the decision rule and include one

advantage and one disadvantage of each method (do not repeat advantages or disadvantages).

b. Review the results individually and determine whether you can individually accept the proposed

project for each method.

c. Draw an overall conclusion as to whether, based on the 3 methods, you would recommend the

project

Method Result 3.89% Accounting Rate of Return Payback Period 5-6 years Net Present Value $36,987 positive