The following table contains information about four projects in which Reynolds Corporation has the opportunity to...

Transcribed Image Text:

The following table contains information about four projects in which Reynolds Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about their potential project. (Click the icon to view the projects information.) Requirements 1. Rank the four projects in order of preference by using the a net present value. d. payback period. b. project profitability index. e. accounting rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? c. internal rate of return. Requiremen Data table Project Project A..... S Investment Required Net Present Value Life of Internal Rate of Payback Accounting Profitability Period in Rate of Project Return Index Years Return 210,000 $ 37,176 5 21% 1.18 2.92 19% 1st preferred 2nd preferre 3rd preferred 4th preferred Project B... S Project C Project D 420,000 $ 25,684 6 22% 1.06 3.13 15% $ 1,025,000 $ 133,942 3 17% 1.13 2.20 13% $ 1,510,000 $ 59,150 4 12% 1.04 3.05 22% Get more h Print Done ar all Check answ The following table contains information about four projects in which Reynolds Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about their potential project. (Click the icon to view the projects information.) Requirements 1. Rank the four projects in order of preference by using the a net present value. d. payback period. b. project profitability index. e. accounting rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? c. internal rate of return. Requiremen Data table Project Project A..... S Investment Required Net Present Value Life of Internal Rate of Payback Accounting Profitability Period in Rate of Project Return Index Years Return 210,000 $ 37,176 5 21% 1.18 2.92 19% 1st preferred 2nd preferre 3rd preferred 4th preferred Project B... S Project C Project D 420,000 $ 25,684 6 22% 1.06 3.13 15% $ 1,025,000 $ 133,942 3 17% 1.13 2.20 13% $ 1,510,000 $ 59,150 4 12% 1.04 3.05 22% Get more h Print Done ar all Check answ