Question: You are asked to evaluate the following two projects for Ample Corporation. Use a discount rate of 13 percent. (Show all your workings and calculations.

You are asked to evaluate the following two projects for Ample Corporation. Use a discount rate of 13 percent. (Show all your workings and calculations. Round your Final answer to 2 decimal places)

Project X

28,000 Investment

Project Y

48,000 Investment

1 14,000 1 24,000
2 12,000 2 17,000
3 13,000 3 18,000
4 12,600 4 20,000

Calculate the values as per below and select which project will be selected as per each method

a.Payback period

b.NPV

c.IRR

d.Which method is most reliable to make a decision? Give two reasons

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