VF Company is looking for opportunities to grow. Management is currently considering project proposals that will...

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VF Company is looking for opportunities to grow. Management is currently considering project proposals that will help expand the business. Several ventures were pre- screened and the team in-charge of evaluating proposals focused on two projects. The following data are given for two mutually exclusive project proposals: (PhP) Project A Project B Initial Investment 50,000.00 60,000.00 Annual Net Cash Inflows: Year 1 15,000.00 30,000.00 Year 2 14,000.00 14,000.00 Year 3 12,000.00 10,000.00 Year 4 12,000.00 10,000.00 Year 5 12,000.00 10,000.00 Assuming that the firm's required rate of return is 20%, compute the following: a) Accounting Rate of Return b) Accounting Payback c) Net Present Value d) Internal Rate of Return e) Discounted Payback Period f) Profitability Index Which project would you undertake? Justify. VF Company is looking for opportunities to grow. Management is currently considering project proposals that will help expand the business. Several ventures were pre- screened and the team in-charge of evaluating proposals focused on two projects. The following data are given for two mutually exclusive project proposals: (PhP) Project A Project B Initial Investment 50,000.00 60,000.00 Annual Net Cash Inflows: Year 1 15,000.00 30,000.00 Year 2 14,000.00 14,000.00 Year 3 12,000.00 10,000.00 Year 4 12,000.00 10,000.00 Year 5 12,000.00 10,000.00 Assuming that the firm's required rate of return is 20%, compute the following: a) Accounting Rate of Return b) Accounting Payback c) Net Present Value d) Internal Rate of Return e) Discounted Payback Period f) Profitability Index Which project would you undertake? Justify.

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