Question: Please answer all questions or don't answer at all. thank you Question H4 Dons Products, Inc. is considering two independent investments having the following cash
Question H4 Dons Products, Inc. is considering two independent investments having the following cash flow streams: Dons uses a combination of the net present value approach and the payback approach to evaluate investment alternatives. It requares that all projects have a positive net present value when cash flows are discounted at 10 percent and that all projects have a payback period no longer than 3 years. Which project or projects should the firm accept? Why? Question 15 Appy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the imvestment, annual net income and cash inflows are expected to be $22,000 and $62,000, respectively. Appy requares a 10% return on all new itrvestments. Present Value of an Annuity of 1 Instructions (a) Compute each of the following: 1. Cash payback period. 2. Net present value. 3. Profitability index. 4 Internal rate of return. 5. Annual rate of return. (b) Indicate whether the investment should be accepted or rejected
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