Question: The following table contains information about four projects in which Rhodes Corporation has the opportunity to invest. This information is based on estimates that
The following table contains information about four projects in which Rhodes 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. c. internal rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? Data table Project Project A ..... $ Investment Required Net Present Value Life of Internal Rate of Profitability Project Return Index Payback Period in Years Accounting Rate of Return 220,000 $ 61,190 5 23% 1.28 2.82 19% Project B ..... $ 410,000 $ 37,744 6 22% 1.09 3.20 15% Project C..... $ Project D..... $ 1,030,000 $ 191,498 1,545,000 $ 3 18% 1.19 2.17 13% 52,680 4 12% 1.03 3.07 25% - - X
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