The following data represents a set of investment alternatives. All are discretionary. Life is 10 years...
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The following data represents a set of investment alternatives. All are discretionary. Life is 10 years for all projects. Salvage is $0 for all projects. Projects with the same number but different letters are mutually exclusive. Projects with different numbers are independent. Project ATCF/year First Cost 1A 2A 2B 2C 3A 4A 4B $60.000 $10.000 $15.000 $25.000 $50.000 $30.000 $45.000 $22.000 $2972 $3823 $5173 $13.580 Incremental ROR over 0 A B 35% 27% 22% 15% 16% 8% 24% $11.598 37% $15.356 32% 21% 6% A. Rank these projects using Payback, NPV, Annual worth, IRR, NPV/FC, Incremental NPV/FC, and Incremental IRR. Assume MARR is 15%. The following data represents a set of investment alternatives. All are discretionary. Life is 10 years for all projects. Salvage is $0 for all projects. Projects with the same number but different letters are mutually exclusive. Projects with different numbers are independent. Project ATCF/year First Cost 1A 2A 2B 2C 3A 4A 4B $60.000 $10.000 $15.000 $25.000 $50.000 $30.000 $45.000 $22.000 $2972 $3823 $5173 $13.580 Incremental ROR over 0 A B 35% 27% 22% 15% 16% 8% 24% $11.598 37% $15.356 32% 21% 6% A. Rank these projects using Payback, NPV, Annual worth, IRR, NPV/FC, Incremental NPV/FC, and Incremental IRR. Assume MARR is 15%.
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Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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