Question: PLEASE SHOW WORK (FORMULAS) Taylor1 Inc. Taylor1 Inc. is considering proposals to open grocery stores in three different locations The initial investment has a useful

 PLEASE SHOW WORK (FORMULAS) Taylor1 Inc. Taylor1 Inc. is considering proposals

PLEASE SHOW WORK (FORMULAS)

Taylor1 Inc. Taylor1 Inc. is considering proposals to open grocery stores in three different locations The initial investment has a useful life of 5 years and no residual (salvage) value Location A Location B Location Initial Investment $5,000,000 $5,000,000 $5,000,000 Cash Flows Year 1 700,000 1,000,000 3,000,000 Year 2 750,000 3,000,000 2,000,000 800,000 5,000,000 2,000,000 850,000 1,000,000 5,900,000 1,000,000 Total Cash Flows $9,000,000 $9,000,000 $9,000,000 Year 3 Year 4 Year 5 Rank each location using (Best/most favorable option = 1; least = 3) the following two methods: 1 Payback period Payback Period IRR 2 IRR Proposal Location A Location B Location C

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