Question: QUESTION 6 Explain two (2) non-financial factors a company needs to consider before deciding to approve an investment with positive Net Present Value (NPV)? (4

QUESTION 6

  1. Explain two (2) non-financial factors a company needs to consider before deciding to approve an investment with positive Net Present Value (NPV)? (4 points)

  1. Evaluate the proposed projects below. Based on the information given, which project would you choose to take on? Clearly explain your reasons. (3 points)

Accounting rate of return

Payback period

Net present value

Project 1

25%

2.25 years

69,700

Project 2

21%

5 years

93,600

(4 + 3 = 7 marks)

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