Question: Question 2. A) Select the best project using Return on Investment ROI (Rate of Return) method the data of both projects are shown the table

 Question 2. A) Select the best project using Return on Investment

ROI (Rate of Return) method the data of both projects are shown

Question 2. A) Select the best project using Return on Investment ROI (Rate of Return) method the data of both projects are shown the table below, B) Compare the effect of decrease in revenues of Annual revenues of 5% on the rate of return for project Y (calculate the % of change in ROI). [25 marks] Project X Project Y Initial cost (OR) C1 C2 Annual revenues (OR/yr) R R Annual O&M cost (OR/yr) 25400 26400 Salvage value (OR) 7200 9600 Useful life (Years) 8 11 Q2 table C1 C2 Student ID 2010533 R 48500 71500 94600

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